Common use of Fixed Rate and Open Reverse Repurchase Agreement Clause in Contracts

Fixed Rate and Open Reverse Repurchase Agreement. A fixed rate open reverse repurchase agreement has a fixed rate and an open maturity date. The initiation message should suffice to settle the opening exchange of securities collateral and cash. A cancellation message is required with a call indicator to cancel the initiation instruction in order to allow for the termination to be instructed. The call indicator should serve as an amendment rather than true cancellation as the Accounting Agent will need to maintain the accrual history on the repo. To support the close out of this type of agreement the following additional business elements will be required: Previous Reference - this will link the cancellation and close messages to the initiation message Repurchase Type Indicator – this will indicate why the initiation instruction is being cancelled (call) and the closing instruction is being sent (call)

Fixed Rate and Open Reverse Repurchase Agreement. A fixed rate open reverse repurchase agreement has a fixed rate and an open maturity date. The initiation message should suffice to settle the opening exchange of securities collateral and cash. A cancellation message is required with a call indicator to cancel the initiation instruction in order to allow for the termination to be instructed. The call indicator should serve as an amendment rather than true cancellation as the Accounting Agent will need to maintain the accrual history on the repo. To support the close out of this type of agreement the following additional business elements will be required: - Previous Reference - this will link the cancellation and close messages to the initiation message - Repurchase Type Indicator – this will indicate why the initiation instruction is being cancelled (call) and the closing instruction is being sent (call)

Fixed Rate and Open Reverse Repurchase Agreement. ‌ A fixed rate open reverse repurchase agreement has a fixed rate and an open maturity date. The initiation message should suffice to settle the opening exchange of securities collateral and cash. A cancellation message is required with a call indicator to cancel the initiation instruction in order to allow for the termination to be instructed. The call indicator should serve as an amendment rather than true cancellation as the Accounting Agent will need to maintain the accrual history on the repo. To support the close out of this type of agreement the following additional business elements will be required: - Previous Reference - this will link the cancellation and close messages to the initiation message - Repurchase Type Indicator – this will indicate why the initiation instruction is being cancelled (call) and the closing instruction is being sent (call)