Changes in these factors might also affect the behavior of the money market rates. III. Reforms toward globalization (shifting to the new gensaki method)  Another important initiative is the unification of contract types for repos. Recently, market participants agreed on the uniform adoption of the new gensaki method, a more globally accepted form of a repurchase agreement.
They are now working on the transition process, such as amending the master agreement. This leads to the fourth key idea: globalization. In Japan, loan-type repos (called gentan repos) have been widespread in the market. This is because the securities transaction tax – although now abolished – used to be levied on the purchase and sale of securities.