A new procedure for executing securities repo (repurchase agreement) transactions has been approved in Uzbekistan. The new rules aim to increase the transparency of repo operations, develop stock market liquidity, and protect investor interests.
The Ministry of Justice has officially registered the departmental document establishing the procedure for conducting securities repo transactions. The document was registered on June 25, 2026, under No. 3860.
According to the regulations, repo transactions will be executed through the electronic trading systems of stock exchanges and over-the-counter (OTC) trade organizers.
A repo transaction is a two-part agreement involving the sale of securities with a commitment to repurchase them at a predetermined date and price. It applies to shares, bonds, and securities derivatives.
Under the new rules, a repo agreement is automatically concluded in the trading system when an initiator places an order and the counterparty accepts it. The second leg of the transaction is then automatically executed through the electronic trading system at the designated maturity date.
Additionally, the trading system will notify both parties one day prior to the execution of the second leg of the repo transaction. The system will also pre-verify the sufficiency of funds and securities required for the transaction.
According to the new procedure, securities trade organizers are required to maintain separate accounting records specifically for repo transactions.
Experts believe this procedure will ensure transparency and reliability in repo operations, boost liquidity in the securities market, and protect investor rights and interests more effectively.
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