Imported from previous forum
I discovered a Custom Tag “Haircut” (5525) used in Execution
Reports, the description is
“This term describes the way brokers and clients protect themselves from
market risk in doing repos.”
http://fixprotocol.org/specifications/fields/5000-9999
Just curious, could anybody shed light on usage of this Tag 
[ original email was from John Harris - john.harris@bondmart.com ]
> I discovered a Custom Tag “Haircut” (5525) used in Execution Reports,
the description is
“This term describes the way brokers and clients protect themselves from
market risk in doing repos.”http://fixprotocol.org/specifications/fields/5000-9999
Just curious, could anybody shed light on usage of this Tag
A “haircut” is a discount applied to the value of collateral sold under a repurchase agreement, to help to ensure that the value of collateral exceeds the value of cash obtained against the collateral.