Your Trusted Clearing House

Products

Repurchase Agreement (Repo)

Picture Not Found

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 an original 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.

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)

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