Repurchase agreement meaning

Beyond the articles reported in depth in the Financial Services news feed on 11 April 2024, subscribers could also find the following extra developments of particular interest: UK Finance: The Parker Review: Progress and challenges for ethnic diversity...

What is repo? A repo, the market shorthand for a 'repurchase transaction', is an arrangement whereby one party (the seller) sells an asset to another (the buyer) with a simultaneous contractual undertaking that the seller will repurchase the asset from the buyer on a future date for a specified price agreed between both parties in advance. Any asset capable of being transferred from one person to another may, in principle, be the subject of a repo transaction. The assets most commonly used in repos are debt securities (bonds), equity securities (shares) and other financial assets, including loans and commodities. However, commodity repos can raise distinctive documentary, structural and legal issues, which are not addressed in this Practice Note. For guidance on commodity repos, see Practice Note: Commodity repo transactions and true sale considerations...

A limited company is permitted to hold, or to transact in, its own shares, provided the conditions in the Companies Act 2006 (CA 2006) are satisfied. Such shares are kept in treasury and are known as the company’s treasury shares. For guidance on how, and why, a company might repurchase its shares to be held in treasury, see Practice Note: Buying back shares into treasury. The rules governing treasury shares are contained in CA 2006, ss 724–732. Breaching any of these provisions (other than CA 2006, s 730—see Practice Note: Cancellation of treasury shares) constitutes an offence by the company and every officer of the company who is in default. A person found guilty of that offence is, on conviction, liable to a fine. Dealing with treasury shares A company may simply retain its treasury shares (see Practice Note: Holding treasury shares)...

This Practice Note sets out the obligations under Regulation (EU) 2023/956 of 10 May 2023, which creates the EU’s carbon border adjustment mechanism (the EU CBAM Regulation), as they will apply during the definitive CBAM phase from 1 January 2026 onwards. For further information on the EU CBAM’s transitional phase (which ran from 1 October 2023 to 31 December 2025), please refer to the Practice Note: EU carbon border adjustment mechanism (EU CBAM)—transitional period (2023 to 2025) for more detail. Objectives of the EU CBAM Regulation (EU) 2023/956, establishing a carbon border adjustment mechanism (the EU CBAM Regulation), was published in the Official Journal of the EU on 16 May 2023. Under Article 1, its overarching purpose is to address greenhouse gas emissions embedded in in-scope products upon their import into the EU. It does this by levying an additional charge on imports of specified goods, aiming to avert the risk of carbon leakage and to reduce global carbon emissions, in line with the Paris Agreement (adopted under...

[ Manufacturer ] [ Address ] Dear [ Manufacturer ], Distribution Agreement dated [ insert date ] (the Agreement) [ This correspondence reflects our recent discussions. ] Pursuant to clause [ specify number of clause containing termination provision ], kindly regard this letter as [ [ eg 90 ] days’ OR immediate ] notice to terminate the Agreement. [ Accordingly, the Agreement will terminate on [ date ]. ]...