Advanced Repo Trading

A two-day training programme designed for those who are already familiar with repo and would like to delve deeper into the complexities of this systemically important market and its interaction with other businesses.

The key objective of the course is to equip attendees with an enhanced understanding of the repo market, future developments, strategic decision-making, and emerging trends in the securities finance industry. The focus will be on trading strategies, new markets, collateral evolution, digitalisation, trading desk practicalities and regulatory changes/challenges.

Learning Outcomes:

By completing the course, the delegate should be able to:

• compare vanilla Repo trading strategies versus more advanced Repo trading structures to enhance revenue making opportunities
• develop trading strategies to enhance the funding capabilities of trading desks that will allow for trading book growth across various securities classes
• recognise how the Repo product can support internal regulatory and liquidity constraints whilst having a limited impact on regulatory capital requirements
• recognise the benefits of cross-over into the securities lending market utilising that product for collateral transformation, facilitating trading book growth and potential profit generation techniques
• recognise how the trading interaction with other internal desks throughout their capital markets teams can lead to growth in their own trading activities
• identify the interaction across various legal structures such as GMRA and GMSLA’s
• recognise counterparty and credit risk considerations, liquidity risk considerations and operational risks
• identify cost considerations to the trading book such as internal trading costs and what are the motivating factors for their management teams.

This course will cover different topics, informed by the current SFT landscape.

Why do firms “Do Repo”?

• Money markets and funding strategies
• Simple vanilla trading
• Liquidity management
• Matched book trading

Capital Markets – Interaction with other trading desks

• Primary and secondary trading and their relationship to Repo trading
• More advanced: Cross-currency / funding swaps as a tool
• Basis trading, forwards trading, hedging

Regulatory Trading

• Basic trading overview and regulatory impacts: LCR, NSFR, CSDR, SFTR and RWA utilisation
• Collateral management and collateral transformation
• Evergreens/Extendibles

Practicalities of trading

• Infrastructure: What a trading desk needs to get started
• Operations, legal and risk requirements
• Legal agreements and related considerations
• Settlement and other operational issues
• Counterparty, credit and liquidity.

Under the line: Costs

• Legal and regulatory practicalities
• Operational costs

Emerging themes and developments in the Repo market

• New products and trading structures, including sponsored repo and collateral markets
• New markets, including GCC and China
• D2C trading platforms
• Synthetic Repo: How do Repo and Total Return Swaps (TRS) interact
• Prime Brokerage trends and financing innovation
• Current issues: T+1 & Mandatory clearing and their impact on the secured financing markets
• Tokenisation, DLT and intraday repo