4508. General collateral repurchase agreement or reverse repurchase agreement allocations

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    1. General collateral transactions in the repurchase agreement or reverse repurchase agreement market are allocated based on the type of transaction. The general allocation methods for cash settlements, forward settlements and replacement transactions when substitutions occur are set out in section 4508.

    2. Money‑fill basis:

      1. general collateral transactions are completed on a money‑fill basis as explained in clause 4508(2)(ii), unless otherwise agreed,

      2. a transaction executed on a money‑fill basis means that the loan or principal amount allocated must be equal to the loan amount transacted. Collateral allocations will be no more than two issues to make $50 million, and

      3. clause 4508(2)(ii) applies to cash trades, forward settlements and substitutions.

    3. If a transaction is executed on a par basis:

      1. the allocated amount must equal the par amount for cash and forward settlements, and

      2. for substitutions, the replacement transaction must be done on the basis of the par amount originally transacted.

    4. Special repurchase agreement or reverse repurchase agreement trades must be done on a par basis.

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