Triparty agent

A triparty arrangement is, in theory, more attractive to smaller market participants as it removes the expense of setting up in-house administration facilities that would be required for conventional repo. This is mainly because the delivery and collection of collateral is handled by the triparty agent. Additional benefits to cash-rich investors include ... 

The triparty agent will issue close-of-business reports to both parties. The contents of the report can include some or all of the following ... 

The extent of the duties performed by the triparty agent is dependent of the sophistication of an individual party s operation. Smaller market participants who do not wish to invest in extensive infrastructure may outsource all repo-related functions to the triparty agent. 

The triparty repo mechanism is a relatively recent development and is designed to make the repo arrangement accessible to a wider range of market counterparties. Essentially it introduces a third-party agent in between... 

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