Triparty repo

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... 

The first triparty repo deal took place in 1993 between the European Bank for Reconstruction and Development (EBRD) and Swiss Bank Corporation. ... 

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 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. 

---