Uzbekistan Approves New Regulatory Framework for REPO Transactions
Uzbekistan has established the rules for conducting repurchase agreement (REPO) transactions involving securities. The newly approved regulatory document governing these financial operations were registered by the Ministry of Justice of the republic.
A REPO transaction essentially functions as a short-term loan. It involves the initial sale of shares, bonds or other financial securities with a binding obligation for the seller to buy them back at a pre-agreed price at a later date.
Under the new national guidelines these specific deals will be executed exclusively through the electronic platforms of the official stock exchange and over-the-counter trade organisers. The digital systems are designed to automatically generate a binding contract the moment an application is submitted by one party and accepted by another.
The REPO operations will be conducted in two distinct stages. Initially the original owner sells their selected securities on the market and then automatically repurchases them once the pre-arranged deadline is reached. To ensure smooth and transparent operations the trading platform will send an automated reminder to all involved participants exactly one day before the scheduled buyback is set to occur.
To further protect market integrity and prevent defaults the electronic trading system will feature built-in compliance checks. Before a transaction progresses the software will verify in advance that both parties hold sufficient funds and securities to fully meet their respective financial obligations.
Additionally the designated trade organisers are now legally mandated to maintain detailed and separate accounting records for all completed REPO deals.
