Comparison · Repo
Comparing Bilateral and Triparty Repo Structures Worldwide
Bilateral repo gives counterparties full control and precision over specific securities. Triparty repo hands collateral selection and maintenance to an agent, trading some flexibility for automation and scale.
Last reviewed 27 October 2026
Feature comparison
| Feature | Bilateral | Triparty |
|---|---|---|
| Collateral selection | Agreed trade by trade | Agent allocates from eligibility schedule |
| Operational workload | High: settlement, margin calls and substitutions handled by each side | Low: agent automates valuation, margin and substitution |
| Credit risk | Direct exposure; managed via haircuts and margining | Direct exposure, but automated daily margining |
| Legal documentation | GMRA or local master agreement | GMRA plus triparty service agreement |
| Specific securities (specials) | Yes | Rarely; mainly general collateral |
| Asset mobility | Depends on each side's custody network | Limited to assets held at the agent |
| Costs | Internal operations, settlement fees | Agent fees |
Choosing a model
- Choose bilateral for specials, short-dated tactical trades or when the counterparty has no triparty access.
- Choose triparty for repeat general collateral funding, large portfolios or diverse collateral.
- Consider CCP clearing where netting benefits and product coverage justify membership.