Robinhood. “What are the legs near and far in a buyout contract?” Retrieved August 14, 2020. An open repo transaction (also known as a repo on demand) operates in the same way as a term repo, except that the trader and the counterparty accept the transaction without setting the maturity date. On the contrary, both parties can terminate the trade by informing the other party before an agreed daily deadline. If an open repo is not completed, it is automatically overwritten every day. Interest is paid monthly and the interest rate is regularly reassessed by mutual agreement. The interest rate on an open repo is usually close to the federal funds rate. An open repo is used to invest cash or to fund assets if the parties don`t know how long it takes them. Finally, ASU 2014-11 also expands disclosure requirements for the disclosure of financial assets, which are recorded as sales, as well as for certain transfers recorded as secured loans (Abhinetri Velanand, Shahid Shah and Adrian Mills, “FASB makes Limited Amendments to its Repurchase Accounting Guidance,” Deloitte Heads Up, June 19, 2014). . .