According to the AEMF, the only difference in the legal nature of the trade would be a simultaneous purchase and a sale, but it is expected to be reported as a single securities financing transaction (SFT). The repo reporting scenarios presented in the September 30, 2016 FMA report (p. 45-53) would also apply to repurchase/sale and sale/purchase of transactions. The EsMA report of September 30, 2016 also proposes to include the market value of securities as a necessary component of transaction data relating to repurchase and repurchase transactions. Buy-back and buy-buy back transactions are subject to the reporting obligations under Article 4, paragraph 1, of the SFTR and in derivative law. A sale/buyout is very similar to a repo, but with two independent contracts, one for the spot contract and the other for the futures contract. The AEMF specified that all renuncie scenarios (bilaterally and centrally) would also apply to purchase/sale. In the case of sell-buy-backs, the counterparty who buys securities, commodities or guaranteed rights related to the ownership of securities or goods during the opening or spot selling stage of trading and agrees to sell them at a specified price at a later date (closing or futures portion of the trading) must be identified as a securityholder. Therefore, the terminology used differs slightly from repo, with the repo generally referring to the price difference, while the sale/buyback refers to a spot price and a forward price. In the case of buy-back/sale transactions that are the effect of a central counterparty, they would be reported in the same way as centralized counterparty deposits. Some people consider selling/buying as riskier instruments than rest, as they do not require a mastering agreement between buyer and seller. The absence of this legal document may increase the risk of sale/buyback if the borrower is late in payment.
In accordance with Article 3, paragraph 8, of the European Parliament and Council Regulation 2015/2365 on the transparency of securities financing transactions, re-use and amending the Regulation (EU 648/2012 (SFTR) “buy-to-let transaction” (BSB) or “title repurchase transaction” (SBB), is a transaction in which a counterparty refers to securities, property, property or guaranteed rights related to the ownership of securities or property, or consent; to sell or subsequently repurchase, at a specified price, guaranteed rights of the same description, such a buy-back transaction for the counterparty that buys the securities, property or guaranteed rights , and a buyback transaction for the counterparty that sells it, such as a buy-back transaction or buy-buy-back transaction that is not governed by a buy-back contract or a reverse repurchase agreement. If you have an urgent need for the resource (for example. B.PDF documents), they are still available on the old BNM website until 31 December 2020. To access it, please replace “www” with “bnmold” in the URL or web address. The information on the report should be used in the “Other Change” type of action. For reporting purposes, the AEMF proposes, with respect to counterparties, to use the terms “co-ceding” and “underwriters.” Therefore, for each of these transactions, a central consideration or a countervailing member would be included as consideration. These operations are generally used to a greater extent than in specific countries (for example. B Spain). The market value should be at the end of each business day, as it is used for collateral management purposes, that is, the market value used to calculate the margin of daily change. You can use the search feature below to find the resource, or use the navigation menu above or on the home page.