Dubai: Brokerage House Securities said it has collaborated with Dubai Financial Market to execute its first repurchase agreement on securities listed in local financial markets.
“The transaction will allow investors to receive liquidity and benefit from the underlying values of the securities they hold,” the securities firm said in an emailed statement.
A repurchase agreement (repo) is a financial instrument through which the buyer provides cash liquidity to the seller against the securities the latter holds, and after a specific period, the seller will repurchase the securities at a pre-agreed rate at the time of the transaction.
