Closing leg: Difference between revisions
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imported>Doug Williamson (Create page. Source: UK Money Markets Code April 2017: http://www.bankofengland.co.uk/markets/Documents/money/code/ukmoneymarketscode.pdf) |
imported>Doug Williamson (Link with Far leg page.) |
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== See also == | == See also == | ||
* [[Far leg]] | |||
* [[Opening leg]] | * [[Opening leg]] | ||
* [[Repo rate]] | * [[Repo rate]] | ||
Revision as of 15:41, 25 June 2017
Repurchase agreements
A securities repurchase agreement ('repo') involves a pair of trades with the same counterparty in the same security.
The second trade reverses the initial sale and purchase, but at a later date and different price.
The closing leg is the second trade in the repo.
It is also known as the off, far, second, or reverse leg.
