Article 18 Financial institution exposures: repo transactionsI1

A ring-fenced body (“A”) may incur a financial institution exposure to a relevant financial institution (“B”) pursuant to an agreement with B—

(a)

for the transfer of its own assets to B on terms—

(i)

imposing an obligation on A to buy those assets, or assets of the same description, from B at one or more subsequent times; or

(ii)

imposing an obligation on B to transfer those assets, or assets of the same description, to A at one or more subsequent times;

(b)

for the transfer of liquid assets from B to A for the purpose of managing A's liquidity risk on terms—

(i)

imposing an obligation on B to buy those assets, or assets of the same description from A at one or more subsequent times; or

(ii)

imposing an obligation on A to transfer those assets, or assets of the same description, to B at one or more subsequent times.

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