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Forward Starting Reverse Repurchase Agreements

The cash paid on the initial sale of securities and the money paid at the time of the repurchase depend on the value and type of security associated with the pension. In the case of a loan. B, both values must take into account the own price and the value of the interest accrued on the loan. For the party that sells security and agrees to buy it back in the future, it is a repo; for the party at the other end of the transaction, the purchase of the warranty and the consent to sell in the future, it is a reverse buyback contract. The advance pension is essentially seen as a hybrid of financing and advance positions covered by Section 402.2a, Appendix A (calculation of the market risk discount within the meaning of paragraph 402.2 g) (2)) When applying the rules and calculations of capital If the date of settlement of the forward pension is provided for more than five working days in the future, the discount based on the value of the contract should be indicated in the corresponding column of the futures contracts in Appendix D (column 13 or 14). /6/ Otherwise, the value of the contract should be shown in the corresponding column of Schedule B`s financing position (column 1 or 2) if the settlement date for the forward repo is between one and five working days. Forward Reverse Rest cash outflows (with mandatory acceptance obligation) are included in the “other cash outflows” according to LCR40.74 and must be offset by the market value of assets received after deducting the discount for the respective LCR assets (15% at Level 2A, 25% for Tier 2B Tier 2B assets and 50% on other Tier 2B assets). 2) Cash funds payable when the guarantee is redeemed Once the real interest rate is calculated, a comparison of the interest rate with those of other types of financing will show whether the pension contract is a good deal or not. In general, pension transactions offer better terms than money market cash loan agreements as a secure form of lending. From a renu possibly`s point of view, the agreement can also generate additional revenue from excess cash reserves. When state-owned central banks buy back securities from private banks, they do so at an updated interest rate, called a pension rate. Like policy rates, pension rates are set by central banks.

The repo-rate system allows governments to control the money supply within economies by increasing or decreasing available resources. A reduction in pension rates encourages banks to resell securities for cash to the state. This increases the money supply available to the general economy. Conversely, by raising pension rates, central banks can effectively reduce the money supply by discouraging banks from reselling these securities. The termination of these contracts must be subject to either at least 30 days` notice or a significant intermediation fee (for example. B, transaction, information technology, notice or legal fees) that must be borne by the customer if operational filings are deferred for 30 days. How does it deal with Tier 1 and Tier 2 assets that are loaned/loaned without further clearing transactions (i.e. no reverse repo/repo or collateral swap) when assets are returned or can be recalled within the next 30 days? Are these assets on the lender or borrower`s side for HQLA? Forward Rest, Forward Reverse Rest and Collateral Collateral Swaps beginning and maturing before the 30-day LCR horizon, are treated as rest, rest and collateral swaps according to LCR40.46 at LCR40.48 or LCR40.78 up to LCR40.81. As a result, we interpret according to the 15 United States. C 78o-5 (b) the provisions of 17 CFR 402.2 to require national securities-registered brokers or traders to hold capital for forward transactions as follows.

When applying GSA`s capital requirements to forward returns, each transaction must be categorized according to the categories of haircut maturities defined in paragraph 402.2 (f) (1).

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