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3.8.1 Bond repo trading includes buyout repo trading, collateral repo trading, etc.
3.8.2 A buyout repo trade refers to a bond trade in which at the time the bond holder sells its bonds to the buyer, the two parties agree that the seller will buy back the same quantity of the same bonds at a specified price on a predetermined date.
A collateral repo trade refers to a bond trade in which at the time the bond holder pledges its bonds as collateral in exchange for a cash loan that is equivalent to the standard bonds converted from such bonds at a conversion ratio, the two parties agree to return the cash and release the bonds pledged as collateral at the maturity of the repo.
3.8.3 The term of bond repo trading shall be based on the calendar day. In case a maturity date coincides with a non-trading day, settlement shall be carried out on the following trading day. |
