Long term contracts and Reverse leg: Difference between pages

Latest revision as of 08:38, 2 July 2022

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 reverse leg is the second trade in the repo.

It is also known as the closing, off, far, or second leg.

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-''Accounting.''
+''Repurchase agreements''
-A project undertaken by an organisation which spans different accounting periods.
+A securities repurchase agreement ('repo') involves a pair of trades with the same counterparty in the same security.
-This normally means a contract exceeding one year but in certain circumstances may be contracts of less than one year, but spanning a company's year end.
+The second trade reverses the initial sale and purchase, but at a later date and different price.
+The reverse leg is the second trade in the repo.
+It is also known as the closing, off, far, or second leg.
 == See also ==
-* [[Accounting period]]
+* [[Far leg]]
-* [[Contract]]
+* [[Opening leg]]
+* [[Repo rate]]
+* [[Repurchase agreement]]
+==Other resource==
+*[http://www.treasurers.org/repos  ACT briefing note: Practical steps to investing in Repos ]
+[[Category:Financial_products_and_markets]]