Introducing Bond Repo reporting and matching platform
Granite CSD is launching it’s Bond reporting platform into the South African market.
The Fortress CSD platform will allow customers to manually capture bond repo transactions or electronically upload bigger volume transactions onto the platform.
Legal nature of Repos and sell/buy backs
Repos are widely used in capital markets financing transactions and is a key source of liquidity
In essence a repo is a bi-lateral agreement between the Lender (buyer) and Borrower (seller).
‘Repos’ can be viewed as the generic term for
- >Repurchase Agreements, “classic repos” or ICMA repos
- >Sell/buy backs
Global Master Repurchase Agreement or GMRA are commonly used to govern these transactions
A repo is a loan secured against collateral
South Africa
Repo and sell/buy back transactions:
- >Are not securities as defined in terms of section 1 of the FMA
- >Are not regarded as a financial instrument for the purposes of the FSRA
- >Are not required to be reported to an exchange as a financial instrument not classified as securities in terms of the FMA
- >Not covered under the exchange Guarantee Fund
Our Model
The Fortress CSD platform is a web based solution
Access the front-end to manually capture repo transactions
File upload functionality to electronically report repos
SWIFT MT5XX reporting to be released in next phase Gives direct access to all trading parties to accurately match the repo transactions
What’s the cost
Granite CSD will only charge:
- >A system access fee
- >A trade reporting and matching fee
- >No reporting and matching fees for Clients trading with exchange members
Who can report Repo transactions
Trading parties can:
Directly report onto the platform
Instruct their Administrators to report repos
Instruct their CSDP’s to report on their behalf
Instruct their Issuer Agent to report repos
What would I save in cost
- >No exchange fees of R0.45 – R0.63 per million
- >No CSD Ad Valorem fee of R0.53 per million (capped)
How to register
Contact Granite CSD Support Centre on support@granitecsd.co.za and request an On-boarding Pack which includes a registration form and a list of document requirements
