Which of the following functions does a to-party repo agent not perform?
A) It checks the eligibility and sufficiency of collateral
B) It can impose an initial margin on behalf of the buyer and manages margin calls
C) It manages substitution of collateral on behalf of the seller
D) It participates in the risk of transactions if one of the parties defaults

Question

Quizplus · Accepted Answer

A to-party repo agent is not a participant in the risk of transactions if one of the parties defaults. Its main functions include checking the eligibility and sufficiency of collateral, imposing an initial margin on behalf of the buyer, managing margin calls, and managing substitution of collateral on behalf of the seller.

Which of the Following Functions Does a To-Party Repo Agent