OTC derivatives (ISDA and German framework contract), z.B. Foreign exchange and interest rate swaps, credit default swaps, options, advances, securities lending and repo transactions, including insolvency advice (e.g. .B. clearing expertise) The repurchase agreement is also referred to as a “genuine repurchase transaction” at the seller of the property, at the “false” or “reverse repo” buyer. Securitisation and securities lending and repurchase agreement (repo) transactions. A repurchase agreement or repo (also known as a repurchase agreement) is a financial transaction that combines the simultaneous sale and subsequent redemption of a property (usually a security). This is a genuine retirement operation in which, during the lifetime, the seller`s right of ownership of the property is transferred to the buyer. The repurchase agreement is a short-term financial instrument with a duration generally between one day (also called overnight repo) and one year. OTC derivatives (ISDA agreement and German framework contract) such as foreign exchange and interest rate swaps, credit default swaps, options, forward transactions, securities lending and repo transactions, including insolvency advice (e.g. .B. clearing notice) In this context, there are five key areas with regard to banks, asset management, securities lending and repo operations, securitisation and other shadow banking companies in which the Commission has options and next steps further consideration. Interest on reverse retirement transactions and interest on repo transactions are recognised as interest or interest charges. The group has chosen to apply the “fair value” option to certain pension and redemption portfolios managed on a fair value basis.
Securities acquired under resale agreements (“reverse retirement transactions”) and securities sold in repo transactions (“repurchase transactions”) are treated as secured loan transactions and are initially invested at fair value, i.e. the amount of cash paid or received. The cash payment is supported by the securities that serve as a guarantee of financing and which have a market value equal to or greater than the amount of the borrowed capital. Securities received in reverse retirement transactions and securities delivered in repo transactions are not recognised in the balance sheet or withdrawn from the balance sheet unless the risks and opportunities of ownership are acquired or abandoned. . Securitization and securities lending and retirement operations (rest). The purchase price to be paid at the beginning of the transaction is equal to the market value of the underlying security (current rate plus unit interest) less a waste collateral (“haircut”). When the bonds are repurchased by the seller, the buyer receives the interest (reposatz) on the credit he grants, which relates exclusively to the identical purchase and sale price of the loan during the period of disposal (the amount of which was the market value at the date of purchase minus the discount of security called “Haircut”). . .