Pillar guide · Repo & collateral
Global Repo Markets & Collateral Infrastructure
Repo connects cash and securities across global markets funding markets. US Treasury, European sovereign bond and Asian government bond markets each have distinct clearing and settlement models. Dealers use bilateral trades, triparty agents and central counterparties, with currency, legal and operational constraints shaping collateral allocation.
Last reviewed 27 October 2026
Three ways to settle a repo
| Model | Who manages collateral | Strengths | Trade-offs |
|---|---|---|---|
| Bilateral | Each counterparty | Flexible, specific-issue trades | Heavy operations, manual margining |
| Triparty | Triparty agent | Automated allocation, substitution and valuation | Agent fees; generally general collateral |
| CCP-cleared | Central counterparty | Multilateral netting, standardised risk management | Margin and default fund contributions; product scope limits |
Major funding markets worldwide
- United States and Canada: government bond financing, dealer funding and collateral mobilisation across North American markets.
- Europe and the United Kingdom: sovereign bond repo, international depositories and bilateral, triparty and cleared funding models.
- Latin America: local-currency government bond financing with market-specific access and documentation.
- Middle East and Africa: domestic funding markets, eligible collateral frameworks and local settlement infrastructure; requirements differ by jurisdiction.
- Japan: large JGB repo market with central clearing and Bank of Japan operations.
- Australia: active government bond repo market used for RBA open market operations.
- Singapore: SGS repo and a regional hub for USD funding and collateral booking.
- Hong Kong: Exchange Fund Bills and Notes repo, with the HKMA providing liquidity facilities.
- Mainland China: very large interbank repo market, increasingly accessible to overseas investors through specific schemes.
- South Korea, India, Malaysia and others: domestic markets with varying levels of offshore access.
Cross-border liquidity
Global banks and dealers manage funding in multiple currencies and hold collateral in several jurisdictions. Moving collateral across borders involves CSD links, cut-off times and legal questions about pledge versus title transfer. Many firms rely on international CSDs and global custodians to mobilise assets.
Collateral optimisation
Optimisation engines allocate the cheapest-to-deliver eligible assets to each obligation, taking account of haircuts, concentration limits, funding costs and regulatory treatment. Success depends on accurate inventory across custodians, currency-aware eligibility and processing coverage across time zones.