NAPP Approves New Securities Repo Transaction Regulations

Tashkent, Uzbekistan (UzDaily.uz) — The Director of the National Agency for Prospective Projects (NAPP) of the Republic of Uzbekistan has approved the Regulation "On the Execution of Repo Transactions with Securities" under order number 15 dated 7 May 2026, which was registered with the Ministry of Justice on 25 June 2026 under number 3860.

The new regulatory legal act details the procedure and conditions for conducting repo transactions by residents of the republic on the domestic financial market, covering transactions with shares, corporate and infrastructure bonds, and derivative securities.

The regulator emphasized that the scope of this regulation is strictly limited to the non-state sector and does not apply to operations conducted with government securities.

According to the approved document, all repo transactions must be concluded between the initiator and the acceptor exclusively through the licensed trading systems of official securities trade organizers.

Specific procedural rules, contract registration conditions, and clearing and final settlement mechanisms for funds and assets are determined by the internal regulations of the trading platforms themselves.

The structure of the financial instrument is based on two linked stages, where the second, concluding part of the transaction (the repurchase or resale) is activated and executed by the trading system fully automatically within the timeframe strictly fixed by the parties.

The regulator has introduced strict qualification requirements for the quality of collateral to minimize systemic risks. Only securities included in the official exchange quotation list can be used as collateral for repo transactions.

Additionally, it has been established that the issuer itself or the specific securities issue must hold an international credit rating, or its equivalent on the national scale, that is a maximum of two notches below the current sovereign credit rating of the Republic of Uzbekistan.

In order to protect investor rights and prevent defaults, the Regulation obliges trade organizers to conduct a preliminary audit of positions.

No later than one working day prior to the closing date of the transaction, the system verifies the sufficiency of funds and volumes of securities in the accounts of the participants and sends a corresponding official notification to the parties.

Any modification of the basic parameters or extension of the deadlines of an already registered repo operation is permitted by fiscal authorities only with the mutual and legally executed consent of both parties.

The implementation of these standards is expected to significantly increase transparency, liquidity, and the overall institutional stability of the Uzbek securities market.