In KELER settlements the repo trade is a sale of securities where the selling Account Holder assumes the obligation to buy back the securities at a later point in time, at a buy back price determined (trade governed by Section 5 /1/ 110 of the Capital Market Act).
In the gross settlement system of KELER hold-in-custody and delivery repo trades can be settled and partial or full extensions can be managed.
The law allows counterparties to enter into so-called special repo trades also, in such cases the delivery repo trade (subject to certain conditions stated in law) can be posted as hold-in-custody repo. In this case KELER Ltd. settles the transaction as a delivery repo trade. The counterparty posts the special repo as hold-in-custody repo in its books.
The repo trade is settled gross, trade by trade, during the operating hours of KELER-VIBER.
The Account Holders cannot have their repo trades concluded expire before the time determined upon posting the repo trade created; only KELER is entitled to make repo trades expire early in certain cases.