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The volume of collateral repo transactions with federal government securities set a record, on May, the 23rd, surpassing the R$ 50 billion mark. Of the 123 transactions, 120 were carried out as “general collateral repo”. General collateral repos are transactions where collateral is pledged in respect of the participant’s net balance, instead of on a transaction per transaction basis. The indication of the securities to be delivered or received as collateral may occur after the time of the trade. Deliverable securities must belong to a basket of securities previously established by market agreement. This basket is composed of securities that basically require a low level of margin.
Of the total of the R$50.9 billion in collateral repos, R$ 50.4 billion were general collateral repos and R$ 500.0 million were specific collateral repos – where the security pledged as collateral is defined at the moment of trading.
The previous record volume of collateral repos was set on 07/12/2006, with R$ 41.1 billion. The total traded volume of the day – R$ 51.1 billion – which was set today, exceeded the previous record of R$ 49.2 billion, set on 07/21/2006.
During the month of May, the average daily volume of collateral repos in the SISBEX/ Securities Clearinghouse is at R$ 16.5 billion. Until the present date, this is the highest average monthly volume this year.
Same day and forward purchase and sale transactions have also increased. During the second quarter of 2007, the average volume, considering transactions carried out until May, 22nd, is at R$ 479.3 million per day. During the fourth quarter of 2006, this average daily volume was R$ 414.2 million, and during the first quarter of this year, was R$ 311.6 million.
