FINANCIAL PRODUCTS
Caution
A financial transaction secured by marketable securities.
How On-Exchange Repos work
On the trade date, the Borrower deposits securities as collateral and receives funds from the Lender.
At maturity, the Borrower pays the Lender the amount received plus the agreed interest, and recovers the deposited collateral.
Benefits of On-Exchange Repos
- For the lender: Attractive interest rate on lent funds.
- For the borrower: Access to short-term funding by leveraging portfolio financial assets as collateral.
- Short-term: From 1 to 120 business days.
- Guaranteed by BYMA.
- Currency options: Available in Argentine Peso (ARS) and US Dollar (USD).
How to trade On-Exchange Repos
- Select an authorized local brokerage firm (ALYC).
- Open an account with your chosen ALYC.
- Fund your account. Transfers from both bank accounts and virtual wallets are allowed.
- Place your order with the ALYC, indicating the term and amount for either lending your pesos/dollars or borrowing funds against your collateral.
- The ALYC executes the trade on your behalf.
- At maturity, the lender receives the principal amount back plus the accrued interest for the term.
For those seeking financing through the market, the Borrower On-Exchange Repo is a common alternative. This instrument offers the possibility of obtaining short-term funding by providing a list of eligible assets as collateral, each with a corresponding haircut.
Borrower On-Exchange Repo
List of eligible assets with their corresponding haircut:
- Fixed Income instruments: Government Bonds, Treasury Bills, Corporate Bonds.
- Equity instruments: Local Stocks and CEDEARs.
- Mutual Funds units.
