Repurchase/​reverse repurchase

This agreement is between a Dealer Member and another entity (including another Dealer Member) in which one party (the seller) agrees to sell securities to the other party (the buyer) and the seller agrees to repurchase these securities at a higher price from the buyer on a certain date or on demand. The purpose of this sale and repurchase arrangement is for the seller to borrow funds from the buyer. From the buyer's perspective the arrangement is a reverse repurchase arrangement in which the buyer agrees to purchase and resell the securities to the seller. The buyer is lending funds to the seller.

Schedules 1 and 7 to Form 1 and IIROC Rule 5900, Agreement related margin requirements, require Dealers Members to meet margin and capital requirements regarding this type of financing arrangement and these requirements differ depending on whether a written agreement was executed.

Repurchase/reverse repurchase - Attachment (pdf)

MFDA and IIROC have consolidated

As of January 1, 2023 the MFDA and IIROC have come together as New Self-Regulatory Organization of Canada (New SRO).

New SRO has assumed the regulatory responsibilities of the MFDA and IIROC.

We have set up an interim website for updates and information related to the New SRO including:

  • Executive Management
  • Governance
  • New SRO Rules
  • Member Application
  • Investor Office and the Investor Advisory Panel
  • Information concerning mutual fund dealers registered in Québec
  • Complaints
  • Careers

Enforcement proceedings, membership lists, continuing education, investor education resources and any other information not set out above continue to reside on www.mfda.ca and www.iiroc.ca.