What is the usual size of transaction amounts in the repo market?

In the repo market, transactions typically involve large sums of money due to the nature and purpose of repurchase agreements. These agreements are primarily used by financial institutions, hedge funds, and other large entities to manage liquidity and obtain short-term financing. As such, the usual size of transaction amounts generally starts from $10 million or more.

The repo market is essential for providing liquidity and financing to these large players in the financial system, allowing them to leverage assets while also mitigating risk. Smaller transactions, such as those less than $1 million or within the $1 million to $5 million range, are less common, as the primary participants in the repo market are looking to execute substantial financing and investment strategies that require higher transaction sizes.

This context illustrates why the correct answer points towards transactions typically being $10 million or more, in line with the operations of large financial entities involved in the repo market.