December 2009 - Note on the profile of repurchase transactions on the JSE Limited
H Coetzer and M Tlali
Last Modified Date:
2020-10-01, 09:30 PM
Quarterly Bulletins > Articles and Notes
Repurchase transactions, loosely referred to as ‘repos’, are widely used in the financial markets. They constitute one of several types of transactions catered for in the secondary bond market on the JSE Limited (JSE). While it is well known that large amounts of funds flow through the repurchase market on a daily basis, the detailed information on the bond market obtained by the South African Reserve Bank (the Bank) makes it possible to measure and analyse numerous dimensions of the formal market in repurchase agreements. The purpose of this note is to explain the profile of repurchase transactions, including the definition and working of repurchase agreements; the underlying instruments used; the active sectors and countries in this trade type; and the maturity spectrum of, and the average interest rates on repurchase transactions.