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.