Repurchase Agreement and Resale Trades
Chapters in this video
- 0:00 Repo versus resale: two perspectives on the same trade
- 1:10 Defining the repurchase agreement and the resale side
- 2:14 Retaining custody and Sam's four safeguards
- 3:18 The counterparty exception: excluded class curveball
- 4:07 The custody trap: why status changes everything
- 5:16 Rapid-fire exam day checklist and recap
What this video covers
- What a repurchase agreement (repo) actually is: a securities sale combined with an agreement to repurchase the same securities
- How the resale side is simply the counterparty's view of the exact same arrangement
- What retaining custody means: the broker-dealer keeps the securities subject to the repurchase agreement
- The four safeguards required when custody is retained: written agreement, timely written confirmations, protection notice, and possession or control
- When the four safeguards do NOT apply: when the counterparty is in an excluded class
- The exam day equation: custody plus counterparty status together determine which safeguards apply
- How to avoid the most common trap: jumping straight to the four safeguards without first checking counterparty status
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 99 course also includes adaptive practice questions and spaced-repetition flashcards, free through the end of 2026.