Intraday repo management consists in transferring government securities from the bank own assets account to a collateral account in the name of the Central Bank (upon bank instruction).
To perform this transfer, Tunisie Clearing checks collateral provisions, debits the bank securities account and credits the Central Bank account.
At the end of the day and upon the Central Bank instruction, Tunisie Clearing can either:
- Restitute collaterals to banks or;
- Transform (totally or partially) collaterals into refunding operations or outright purchase operations.
In case of insufficient securities provisions, the operation is pended and rejected (no recycling).
Repo is the operation of selling securities from the seller to the buyer at an agreed price. The seller (agreeing to repurchase securities in the future)and the buyer (agreeing to sell in the future) are mutually and irrevocably engaged to repurchase securities and to retrocede them at an agreed price and date.
From T to the deadline, the seller and the buyer must respectively send the repo and reverse repo instructions to be matched at Tunisie Clearing. On T At 11:15 am, Tunisie Clearing controls repo securities provisions and at 11:30 am, sends cash clearing instructions to the Central Bank. Upon receipt of the Central Bank confirmation on cash payment, the repo operation is settled and a reverse repo instruction is automatically generated.
On the reverse repo settlement date at 11:15 am, Tunisie Clearing controls reverse repo securities provisions and sends, at 11:30 am, cash clearing instructions to the Central Bank. Upon receipt of the Central Bank confirmation on cash payment, the reverse repo operation is settled.
When a repo operation fails to settle, it is rejected without any recycling. In the same way, when a reverse repo operation fails to settle, it would be either accounted or rejected without any recycling.
Changes could be processed on a repo transaction and could be processed either by substituting securities or by modifying the reverse repo price and date:
Substitution of securities:
Change of the reverse repo date: