The Repo Trade Lifecycle is a series of logical and sequential steps which should be practised in order for a firm to process repo trades in a safe and secure fashion.
The following ‘roadmap’ diagram will be used to enable identification of 1) how far through the overall trade lifecycle a particular topic is, and 2) how many steps remain:
The following pages depict one repo trade in which Firm A is the cash borrower and the collateral giver, including calculations of cash values and bond quantities, and the actions necessary for settlement and exposure mitigation to occur in a timely fashion.
The following should ideally be in place prior to repo trade execution (viewed from the perspective of Firm A):
- GMRA and applicable Annex signed by Firm A and its counterparty, Party G
Standing Settlement Instructions
- SSIs are exchanged between Firm A and Party G