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The updated Trading Rules that become effective April 16, 2010 provide for execution of repo trades with the Central Counterparty on RTS Standard.
Repo trades with the Central Counterparty eliminate the risk associated with bilateral lending and borrowing cash and securities on the equities market, and allow the market participants to extend their range of counterparties on the repo market. It is also a tool for prolongation of repo trades with any market participants with settlement guaranteed by the Central Counterparty and without the necessity to provide additional funds.
The minimum settlement cycle for the first and second legs of a repo trade ranges from one to four days.
Obligations under repo trades are netted against obligations under trades executed based on direct and indirect orders on RTS Standard.
