Document background
The Repurchase Agreement serves as the primary legal framework for conducting repo transactions in the Netherlands, enabling parties to engage in secured financing arrangements through the sale and repurchase of securities. This document is essential when parties wish to establish a lasting relationship for conducting multiple repo transactions, providing the legal and operational foundation for these deals. It incorporates specific Dutch law requirements, including provisions from the Dutch Civil Code and Financial Supervision Act, while also adhering to European Union regulations such as the Securities Financing Transactions Regulation (SFTR) and Financial Collateral Directive. The agreement covers crucial aspects such as purchase and repurchase obligations, margin maintenance, default scenarios, and close-out procedures, making it suitable for financial institutions, banks, and other entities engaging in securities financing transactions in the Dutch market.
