Rba Repurchase Agreements

In accordance with the terms of the SIFMA/ICMA agreement, under which the reserve bank carries out its operations in the domestic market when the reserve bank receives an income payment on the same day for a security it holds under a reverse pension contract, the payment of the income is paid to the party that sold the guarantee to the reserve bank in pension. If, as a result of the transfer, the margin returns to the reserve bank, the counterparty must satisfy the margin call with the eligible securities delivered on the same day as the profit transfer. In the case of deposits granted through the permanent facilities of the bank reserve, counterparties seeking the return of securities previously sold to the reserve bank may also request the termination of an existing pension and, if necessary, agree on a new pension contract. In this case, the purchase prices of the replacement securities must not match the redemption prices of the original titles. With respect to the pension transactions in the Reserve Bank`s open market operations, the Reserve Bank is seeking reimbursement of the settlement costs associated with it by the use of the functionality of the austraclear buyback contracts. In concrete terms, the Reserve Bank is recovering from its equivalent: in the case of a “reverse-repo” transaction, the opposite happens: the desk sells securities to a counterparty, subject to a subsequent repurchase agreement of the securities at a higher buyback price. Reverse pension operations temporarily reduce the amount of reserve balances in the banking system. buyback contracts (also known as rest) are only concluded with primary traders; Reverse-repurchase agreements (also known as “reverse-rest”) are implemented both with primary traders and with an expanded range of reverse pension counterparties, including banks, state-subsidized enterprises and money funds. The reserve bank strives to honour the reasonable claims of counterparties, to return securities held by the bank reserve under an existing self-payment contract and to obtain replacement securities. The Reserve Bank is not required to participate in these exchanges and may refuse to respond to security replacement requests if counterparties require a high volume of substitutions.

A summary of each series of Reserve Bank open market transactions is published in the Reserve Bank`s market data services pages, shortly after participants were informed of their approaches (First Round: Reuters – RBA32-RBA34, Bloomberg – RBAO08; Other rounds: Reuters – RBA36, Bloomberg – RBAO08). These include the value, weighted average and closing rates of maturity-ended pension transactions, as well as details of all foreign exchange transactions and swaps on the same day. The same information is then published in the statistical table A3 on the reserve bank`s website.