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General FpML Discussion › Technical & Implementation Questions › Repo vs Reverse Repo
In the fpml repo model, how do we distinguish between a repo and a reverse repo trade. what would be the ISDA product type for Repo and Reverse repo
Reverse Repo is a term used when the side that usually buys in the near leg instead sells it.
The fpml:Repo type explicitly specifies the buyer and seller on both the nearLeg and farLeg.
The productType would be Repo under productTypeScheme http://www.fpml.org/coding-scheme/product-type-simple
Repo is not in ISDA’s http://www.fpml.org/coding-scheme/product-taxonomy because it’s not an Over The Counter Derivative.
Some parties want to classify this as a different product to a Repo and can do so using a bespoke scheme.
1276: Repo vs Reverse Repo