Equities

Repo (Repurchase Agreement) transaction is one of the essential instruments in the financial market that allows the parties involved to make loans with securities collateral. In Indonesia, IDClear (Indonesian Securities Guarantee Clearing House) is a third party that facilitates repo transactions through a triparty repo system. This system is designed to provide efficiency, transparency, and security in every transaction.

The Role of IDClear in Repo Transactions
IDClear acts as an independent third party in Repo transactions. The primary roles of IDClear are

• Custodian: IDClear holds the securities that serve as collateral in Repo transactions.
• Clearing House: IDClear clears and settles the transaction, ensuring that the obligations of both parties are fulfilled.
• Risk Management: IDClear implements risk management mechanisms to protect the interests of all parties involved.