Regulatory Alerts2018-07-23 | 24026Added · Updated
Amended Repurchase Agreements Guidelines July 2018
The guidelines establish a minimum transaction value of TTD 60,000 or USD 10,000 equivalent and prohibit participants from entering into transactions intended to distort the market. They mandate that collateral securities for non-institutional investors be restricted to specific government and listed corporate bonds, while requiring all such collateral to be held by an approved custodian. Broker-dealers acting as repo sellers must maintain specific capital levels, execute monthly mark-to-market valuations, and settle margin calls within five days. Additionally, sellers are required to submit disclosure statements, standard master repurchase agreements, and financial statements to the Commission within specified deadlines.
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