[This message was posted by John Harris of BondMart Technologies, Inc. <john.har...@bondmart.com> to the "General Q/A" discussion forum at http://fixprotocol.org/discuss/22. You can reply to it on-line at http://fixprotocol.org/discuss/read/c28e47ee - PLEASE DO NOT REPLY BY MAIL.]
Well, people don't generally use the phrase "the buy-side of the repo," at least not in my experience. The easiest way to keep repo straight is to think in terms of the direction of the collateral movement. On the start leg of the repo, the buyer of the collateral is the supplier of cash; the seller of the collateral is the recipient of the cash. Commonly, the buyer of the collateral has excess cash and is looking for a secure, overnight or term investment. The seller of the collateral is looking for overnight or term financing of a securities position. On the end leg of the repo, the collateral moves back to its original seller, against payment of cash. You will also hear the terms "repo" and "reverse repo," but these really just confuse the issue, because you have to ask, "From whose perspective?" Just keep straight whether you are buying or selling collateral on the start leg of the repo and you won't go wrong. Best, John > In FIX, is the buy-side of a REPO buying cash or buying the > collateral? TIA! [You can unsubscribe from this discussion group by sending a message to mailto:unsubscribe+100932...@fixprotocol.org] -- You received this message because you are subscribed to the Google Groups "Financial Information eXchange" group. To post to this group, send email to fix-proto...@googlegroups.com. To unsubscribe from this group, send email to fix-protocol+unsubscr...@googlegroups.com. For more options, visit this group at http://groups.google.com/group/fix-protocol?hl=en.
