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Repurchase Agreement (Repo)

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A Repo, or 'Repurchase Agreement’, is a financial instrument in which a Repo buyer provides capital to a Repo seller collateralized by the seller’s securities.  After a fixed period of time, the seller has the opportunity to repurchase the securities used as collateral from the buyer at a set price agreed upon at the beginning of the transaction.  Dubai Clear will facilitate settlement of OTC Repo transactions in relation to DFM listed securities.



Benefits of Repo Transactions:

  • Creating value for investors in releasing values of their securities through an OTC Repo with a registered Repo buyer, which may then lead to further improvement in trading activity.

  • Enhance market liquidity, and offers opportunity to businesses and investors leverage their holdings,

Pre-requisites:

  1. Service available to Repo buyers registered with Dubai Clear.

  2. Who can register as Repo buyers:

    • Any UAE financial institutions (FIs) licensed by the UAE Central Bank.

    • Any foreign FIs licensed in a jurisdiction as a financial institution or institution permitted to lend monies, provided such institutions provide Dubai Clear a copy of notary public-certified true copy of a regulatory confirmation document that the FI is a regulated entity to lend monies or is authorized to lend monies (The Original to be submitted to Dubai Clear Upon Request).

    List of Registered Repo Buyers as at 09 July 2018:

    • Equities First Holdings, LLC (EFH)

    Repo Statistics

    #

    Name of Symbol

    Repo Quantity

    Transaction Date

    1

    Islamic Arab Insurance Company (SALAMA)

    15,000,000

    23/06/2019

    17,000,000

    22/05/2019

    2

    Drake & Scull International (DSI)

    22,500,000

    10/06/2018

    22,500,000

    07/06/2018

     

    3

    Gulf Navigation Holding PJSC (GULFNAV)10,000,00030/03/2021

    3,000,000

    10/06/2018

    3,000,000

    07/06/2018


    For more information on the Repo Procedures and Rules, please refer to the Regulations, Policies & Procedures