Automatic repo trading system
Automated Coupon Tracking—FICC passes the coupon payment from the holder of a security (reverse participant) to the funds borrower (repo participant) when the repo term crosses coupon payment date. Reduction in Securities Transfer Activity —As a result of netting, the total daily settlement obligations of participants are substantially lowered. Repo markets play a key role in facilitating the flow of cash and securities around the financial system. They offer a lowrisk and liquid - investment for cash, as well as the efficient management of liquidity and collateral by financial and non-financial firms. A well functioning repo market also supports liquidity and price discovery in cash subject to an automatic stay as would be the case for a collateralized loan. A repo or sec lending trade consists of six key variables: the size of the transaction, the interest rate, the type of eligible collateral, the haircut, the maturity date, and the counterparties.