Repurchase agreement definition

View the related practice notes about Repurchase agreement

Introduction to regulations and legislation relevant to mutuals

Introduction to regulations and legislation relevant to mutuals The purpose of this Practice Note is to provide an overview of the legislation underpinning building societies. The Practice Note also briefly covers the legislation underpinning other mutual societies such as friendly societies. Overview of the Building Societies Act 1986 The Building Societies Act 1986 (BSA 1986) gave building societies what, at the time, was a completely new legal framework for the first time since the initial comprehensive building society legislation in 1874. BSA 1986 has subsequently been amended on a number of occasions, and was substantively revised by the Building Societies Act 1997 (BSA 1997), by the Financial Services and Markets Act 2000 (FSMA 2000) and by the Financial Services Act 2012 (FSA 2012) (which also amended FSMA 2000). The Financial Services (Banking Reform) Act 2013 made some amendments to the BSA 1986 and various minor pieces of legislation have also made some further amendments to the BSA 1986. Further amendments were made by the Building Societies Act...

Cleared derivatives—treatment of client collateral for leverage ratio purposes

Cleared derivatives—treatment of client collateral for leverage ratio purposes What is clearing of derivatives? Clearing is a process which eliminates the normal risk that a party to a derivatives transaction will default. The main parties involved in the clearing process are: • a financial institution known as a clearing house, a central counterparty or a CCP, and • other financial institutions, usually banks or brokers, which enter into a clearing agreement with the clearing house—these institutions are known as clearing members of the clearing house or simply clearing firms In cleared transactions: • all transactions are entered into by clearing members, which may do this for their own accounts or for the accounts of their clients, and • the clearing house interposes itself between the clearing members who have entered into the transaction, becoming a party to every transaction—each party therefore is exposed to the risk of the clearing house but not to the risk of the other party The way in which the clearing house is...

View the related q&as about Repurchase agreement

Securities lending and repos both involve the transfer and retransfer of securities and both can be used to cover a short position. What is the difference?

Securities lending and repos both involve the transfer and retransfer of securities and both can be used to cover a short position. What is the difference? What are securities lending and repurchase (repo) transactions? A securities lending transaction involves: • outright transfer of securities by one party (the lender) to another party (the borrower) in exchange for outright transfer of collateral (which may be cash or securities) by the borrower to the lender • simultaneous agreement that the borrower will deliver securities which are equivalent to (that is, fully fungible with) the loaned securities when the transaction terminates in exchange for delivery by the lender of assets which are equivalent to the collateral • payment of a fee by the borrower to the lender • payment by the borrower to the lender of amounts equal to income received on the loaned securities during the term of the transaction (manufactured dividends), and • if the collateral is in the form of securities, payment by the lender to the...

View the related News about Repurchase agreement

Banking and Finance weekly highlights—17 April 2025

This week's edition of Banking and Finance weekly highlights includes: (1) News Analysis on the Jones v City Electrical Factors Ltd case looking at the construction of guarantees and the successful enforcement of personal guarantees; (2) ICMA publishes 2025 legal opinion updates for GMRA; and (3) ISLA publishes 2025 GMSLA netting opinions expanding coverage to 67 jurisdictions.