Insights
How do you distinguish a repurchase transaction from a buy/sell-back from a securities loan?
A question that comes up frequently in discussions about the construction of the common domain models (CDM) which are supposed to provide digital representations of repo and securities lending is how do you distinguish a repurchase transaction from a buy/sell-back from a securities loan.
The question arises because a CDM is supposed to infer the nature of a transaction or instrument from its economic terms rather than having to rely on parties themselves naming what they think they have transacted.
In our latest report, we delve into the subtle differences between the various types of repo.
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