Test Repo Facilities

The Reserve Bank offers test repos to eligible counterparties to ensure they are operationally prepared to access RBA facilities.1 Test repos are entered into at the discretion of the Reserve Bank.

Available Facilities

The RBA offers tests of:

Approaching the RBA for a Test

Approaches should be made to the Reserve Bank via dealingroom@rba.gov.au to undertake test repos, and should specify:

  • The request is for a test repo
  • RBA facility (OMO, ELA, or Overnight SF)
  • Preferred trade date
  • ISIN and proposed face value of eligible security
  • Email address/es (preferably a group email) for PDF trade confirmations.

OMO and ELA test repos are:

  • settled as floating rate repos in Austraclear4
  • for small amounts – typically $1m face value
  • for an overnight term
  • contracted at the cut-off rate as a spread to cash rate target of the Reserve Bank’s most recent regular OMO
  • against eligible securities (at the Reserve Bank’s sole discretion, these securities may include securities which the Reserve Bank considers to be materially related to the counterparty – such as self-securitisations).

Overnight SF test repos are:

  • settled bilaterally as an all-in fixed-rate repo in Austraclear
  • for small amounts – typically $1m face value
  • for an overnight term
  • contracted at the cash rate target + 25 bps
  • against eligible securities (excludes securities the Reserve Bank considers to be materially related to the counterparty – such as self-securitisations).
  • inclusive of a small settlement fee per line of collateral, recouped on the second leg (unwind) of the repo.

Endnotes

1 Test repos may not be available to members restricted by special terms in their RITS agreements.

2 ELA test repos are for the sole purpose of testing operational capacity to execute ELA repos and as such, the attestation and documentation requirements are waived for ELA tests.

3 Tests of the Overnight SF are only available for eligible counterparties that settle payments across their own ES account (have active ES accounts).

4 See Austraclear matching criteria for repurchase agreements.