System for repurchase agreement matchbook and method of risk management

A system for structuring a repurchase agreement matchbook ("repo matchbook") includes in one aspect, separating a repo matchbook from other capital market businesses of a company (such as a dealer). In one embodiment, an independent broker-dealer is created for the sole use of such a deale...

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Bibliographic Details
Main Authors Tabacchi, James, Schuit, Jason, Ma, Chin-Hung Terence, Akgun, Murat
Format Patent
LanguageEnglish
Published 30.08.2011
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Summary:A system for structuring a repurchase agreement matchbook ("repo matchbook") includes in one aspect, separating a repo matchbook from other capital market businesses of a company (such as a dealer). In one embodiment, an independent broker-dealer is created for the sole use of such a dealer. In another embodiment, an independent broker-dealer is created to gain profit by an independent group of investors. Another aspect of the system provides a method for creating a multi-tiered, varied risk capitalization structure for the creation of a new company, which in some embodiments is the independent broker-dealer. A method of risk management that may be applied to the operation of the repo matchbook or another business includes setting out strict operational guidelines for risk mitigation.