General Securities Sales Supervisor (Series 10) Practice Exam 2026 - Free Series 10 Practice Questions and Study Guide

A repurchase agreement, commonly known as a "repo," involves the sale of securities with a commitment to repurchase them at a later date for a specified price. Under MSRB (Municipal Securities Rulemaking Board) rules, one of the key requirements for a repurchase agreement is that it must be in written form. This written documentation is crucial as it provides clear evidence of the terms, conditions, and obligations of both parties involved in the transaction.

Having the agreement in writing helps to ensure transparency and accountability, which are essential in the realm of municipal securities. It establishes a formal record that can be referred to in the event of any disputes or clarifications needed regarding the agreement. Written documentation is a standard practice in financial transactions to protect the interests of all parties and ensure regulatory compliance.

This requirement is particularly important in maintaining a reliable and orderly market for municipal securities. In contrast, verbal agreements may lead to misunderstandings or lack the necessary detail required for compliance with governing rules and regulations.