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PIB A4.11.27

An Authorised Firm with repurchase agreements and reverse repurchase agreements in its Trading Book has an Exposure to:

(a) the Issuer of the Security it has sold in a repurchase agreement; and
(b) the Counterparty where the Securities or cash given by the Authorised Firm exceed the Securities or cash it receives (i.e. there is a net margin given by the Authorised Firm) in a repurchase agreement or reverse repurchase agreement.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]