Document background
The Treasury Repurchase Agreement is a crucial instrument in Malaysia's financial markets, used for liquidity management and short-term financing. This document is specifically designed to comply with Malaysian financial regulations, including Bank Negara Malaysia's guidelines and the Capital Markets and Services Act 2007. It is used when parties wish to enter into repo transactions involving government securities, corporate bonds, or other eligible securities. The agreement covers essential elements such as purchase and resale terms, margin maintenance, events of default, and close-out procedures, while accommodating both conventional and Islamic finance structures where necessary. It includes specific provisions required by Malaysian regulators and considers local market practices and settlement procedures.
