Updates to CCP-cleared repo trading in US shares

From 31 January 2022, restrictions applied to repo transactions with the central counterparty (CCP) in US shares in the register closing period will be lifted.

Banks and brokers will be able to enter into repo transactions with the CCP through the record date and open short positions in US securities before that date. The +/-20% price range restriction applied right before the record date will be also abolished.

If the dividend record date falls between the first and second parts a repo trade with the CCP, National Clearing Centre (NCC), which acts as the CCP, will transfer 100% of the return to the counterparty to the trade.

On 31 January 2022, an updated version of the Clearing Rules providing for these changes will come into force.