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Trading Modes

General Information   Main Trading mode and Incomplete Lots Trading Mode   Trading in Negotiated Deals Mode   REPO trade   Placing Securities   Repurchasing Bonds   Special Features of Submitting Applications and Executing Trades   REPO Auction   Special Features of REPO Trades with the Bank of Russia

A REPO trade is a securities trade consisting of two parts with execution dates that are determined by the settlement code and REPO period. For the first part of the REPO trade, the seller must supply the securities and the buyer must pay monies on its execution date.

REPO trades in securities are made in the “Equity REPO” and “Bond REPO” trading modes.

The list of securities admitted to trading in the “Equity REPO” and “Bond REPO” trading modes is established by the resolution of the Director General of the Exchange.

The “Equity REPO” and “Bond REPO” trading modes allow trades to be concluded with the execution date on any day from the day after the trade’s conclusion until its chosen execution date, inclusively. The execution date of the second part of the REPO trade is the date specified as Т+x+k, where Т+x is the execution date of the first part of the REPO trade and k is the REPO trade period (k has a value from 0 to 180 calendar days, x is from 0 to 2 settlement days).

General Features of “Equity REPO” and “Bond REPO” Trading Modes:

  • Using a discount to the previous trading day’s market price when concluding REPO trades (changing the REPO trade procedure).
  • Using compensational contributions as the standard exchange procedure for controlling market risks and reducing the risk of obligation non-fulfillment. The (optional) compensational contributions procedure allows counteragents to determine the maximum and minimum discount value when concluding a trade. Compensational contributions involve the early partial execution by one of the parties of its obligations on the second part of the REPO trade, i.e. using compensational contributions reduces the obligations (and demands) of counteragents on the second part of the REPO trade.
  • Concluding trades without collateral control for the first part of REPO (S0) and trades with deferred execution of obligations on the first part of REPO — the 1st or 2nd day after the trade’s conclusion (S1, S2).
  • Concluding inter-day REPO trades (one day is assigned for executing obligations on the first and second parts of those trades).
  • Concluding REPO trades with the possibility to execute obligations on its second part for a period of up to 180 calendar days, not only within the limits of the current coupon period.

Traders can submit targeted and non-targeted REPO bids to the trading system from their workstations in “Equity REPO” and “Bond REPO” trading modes. For targeted bids: the REPO sum, number of securities, and the initial discount value are interrelated, and if the Trader has two of them in the targeted REPO bid(s) it is sufficient for calculating the third in the Trading System. The current discount value is calculated in the Trading System each trading day, from the execution date of the first part of the REPO trade concluded in the “Bond REPO” trading mode with conditions that stipulate the limiting discount values until the date following the actual execution date of the second part of the REPO trade, or after the date of non-execution of the REPO trade.

If the current discount value exceeds the maximum limiting discount value, the buyer on the first part of the REPO trade has the obligation of delivering the compensational contribution in the form of securities (through partial preliminary delivery of securities on the second part of the REPO trade) on the next settlement day. If the current discount value becomes less than the minimum limiting discount value, the seller has the obligation to pay the compensational contribution in the form of money (through partial preliminary payment on the second part of the REPO trade) on the next settlement day. The compensational contributions procedure is determined in accordance with the Clearing Regulations. Partial contribution is not allowed.

The “Equity REPO” and “Bond REPO” trading modes allow the REPO trade to be executed ahead of time, starting on the settlement day following the day that the first part of the trade is executed.

Please note that operations in the “Equity REPO” and “Bond REPO” trading modes cannot be performed from versions lower than 3.20 of the automated workstation.