Request for proposal 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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-(RFP).
+''Repurchase agreements''
-==== RFPs in banking ====
+A securities repurchase agreement ('repo') involves a pair of trades with the same counterparty in the same security.
-A request for proposal is a formal tender which communicates a customer’s requirements to the banks which are being asked to bid to provide services.
+The second trade reverses the initial sale and purchase, but at a later date and different price.
-The RFP is used to facilitate selection of a bank or banks.
+The reverse leg is the second trade in the repo.
-==== RFPs more generally ====
+It is also known as the closing, off, far, or second leg.
-By analogy, similar communications in relation to the provision of non-banking services, or of goods.
+== See also ==
+* [[Far leg]]
+* [[Opening leg]]
+* [[Repo rate]]
+* [[Repurchase agreement]]
+==Other resource==
+*[http://www.treasurers.org/repos  ACT briefing note: Practical steps to investing in Repos ]
-== See also ==
+[[Category:Financial_products_and_markets]]
-* [[Request for information]]