A repo (repurchase agreement) whose start date is one or more business days later than the trade date. In other words, it settles in a longer time period than next day settlement. The purchase date in a forward starting repo transaction is one business day or more further to the common settlement date for cash transactions involving the same collateral security. Technically speaking, a forward starting repo is a trade with its opening legs initiated at T+1 or further in the future.

This type of repo does not function under overnight funding conditions on the calculation date for enhanced overnight repo rate averages. Rates on forward starting repos may differ from overnight funding rates due to the fact that forward starting repos factor in expectations of future rates at the time of deal negotiation (forward-looking elements).

A special case of forward starting repo is the so-called tom-next repo (T/N repo)- an overnight repo that is executed on T+0, with the opening leg of the trade settling on T+1 (tomorrow), and the closing leg of the transaction settling on T+2 (next).

It is also referred to as a forward repo.