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Exposure Draft on Repurchase Agreement Transactions

Release Date: 20 Aug 2019

This Exposure Draft sets out the revised requirements and expectations of the Bank on market participants (licensed banks and licensed investment banks) which enter into Repo transactions involving Ringgit and non-Ringgit repo and reverse Repo transactions including any outright sale or purchase of Repo securities with an intention to repurchase or resell these Repo securities at a future date.

Revisions to the policy document comprise primarily of:

  1. Extension of the maximum tenor of a Repo to 5 years from 365 days previously;
  2. Expansion of eligible securities to accord flexibility to market participants in their conduct of Repo transactions; and
  3. Removal of subjection to Malaysian Annex

Submission of feedback –

The Bank invites written feedback on the proposed policy framework in this Exposure Draft, including suggestions on areas to be clarified and alternative proposals that the Bank should consider. The written feedback should be constructive and supported with clear rationale, including accompanying evidence, empirical analysis or illustrations where appropriate.


See: Repurchase Agreement Transactions


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