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Home > Products > Repurchase Agreement (Repo)

Repo
Repurchase Agreement (Repo)

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.  DFM 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 DFM.
  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 DFM 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 Buyer as at 09 July 2018:

  • Equities First Holdings, LLC (EFH)

Repo Statistics as at 09 July 2018:

#

Name of SymbolRepo Quantity 
1Drake & Scull International (DSI)45,000,000
2 Gulf Navigation Holding Pjsc (GULFNAV) 6,000,000

For more information about Repo Procedures and Rules, please click on the below: