Which parties typically initiates the recall of securities in a repo transaction?A) The borrowerB) The lenderC) The clearinghouseD) The regulator

In a repo transaction, the party that typically initiates the recall of securities is B) The lender.

Here's a step-by-step explanation:

1. In a repo transaction, two parties are involved: the borrower and the lender. The borrower sells securities to the lender and agrees to repurchase them at a later date.

2. The lender, in return, gives the borrower cash with the securities serving as collateral.

3. If the lender decides to recall the securities, it means they want the borrower to repurchase the securities before the agreed-upon date.

4. This is typically initiated by the lender because they are the ones who hold the securities during the duration of the repo transaction.

5. Therefore, the lender has the right to recall the securities if they feel it is necessary, perhaps due to market conditions or a change in the borrower's creditworthiness.

So, the answer is B) The lender.