Trading Procedure

Direct REPO with the Bank of Russia trades and inter-dealer REPO trades are made in the detached mode using REPO bids and are “targeted” trades.

There are REPO trades without confirmation (REPO trades between a Dealer and one or two Investors served by one Dealer) and with confirmation (REPO bargains between Dealers acting both on their own behalf and on orders from Investors).

To execute a REPO trade without confirmation, the Dealer enters a single bid into the Trading System. To execute a REPO trade with confirmation, the bid of the Dealer who initiates the REPO trade and the confirmation of the Dealer who accepts the offer at the completion of the REPO trade are entered into the Trading System.

A REPO trade without confirmation is considered to be completed when the REPO bid, which contains all mandatory terms of the REPO trade, is registered in the Trading System. The REPO trade with confirmation is considered to be completed when the REPO confirmation that the Dealer submits in response to the registered bid in the Trading System for the REPO of the first Dealer is registered in the Trading System.

When executing a direct REPO trade with the Bank of Russia, the bid and confirmation of the execution of the REPO trade is entered by the Bank of Russia, and when executing an inter-dealer REPO trade it is entered by the Dealer-counterparty.

Stock exchange modified REPO operations are executed using the procedure for the sale of bonds and are targeted to the Bank of Russia.