Part 11Manufactured payments and repos

Chapter 1Introduction

569Meaning of “repo”

1

For the purposes of this Part there is a repo in respect of securities if conditions A, B and C are met.

2

Condition A is that a person (“the original owner”) has agreed to sell the securities to another person (“the interim holder”).

3

Condition B is that the securities are UK shares, UK securities or overseas securities.

4

Condition C is that the original owner or a person connected with the original owner—

a

is required to buy back the securities by the agreement or a related agreement,

b

is required to buy back the securities as a result of the exercise of an option acquired under the agreement or a related agreement, or

c

exercises an option to buy back the securities which was acquired under the agreement or a related agreement.