Infrastructure · Triparty
Triparty Collateral Management Across Global Markets
In a triparty arrangement, an independent agent (a custodian bank or CSD) sits between collateral giver and receiver, selecting eligible assets, valuing them daily and substituting them when needed. Both parties agree the rules; the agent runs them.
Last reviewed 27 October 2026
The allocation cycle
| Stage | What happens |
|---|---|
| Trade agreement | Counterparties agree amount, term and rate, and reference an eligibility schedule |
| Allocation | Agent selects assets from the giver's account meeting the schedule |
| Valuation | Collateral is marked to market and haircuts applied |
| Margining | Shortfalls or excess are corrected automatically |
| Substitution | Giver can recall assets it needs; agent swaps in replacements |
| Maturity | Collateral returned and cash repaid |
Eligibility schedules and concentration limits
Schedules define accepted asset classes, issuers, ratings, currencies and index membership, with haircuts for each. Concentration limits prevent too much exposure to one issuer, sector or country. Receivers can also apply ESG screens.
Operating across time zones
A global collateral programme must cover Asian, European and American trading hours without assuming continuous access to every asset. Compare allocation windows, substitution cut-offs, holiday calendars and domestic depository links, and arrange handovers between regional teams.
Where triparty fits
- General collateral repo for funding.
- Equity-collateralised securities lending.
- Initial margin segregation under uncleared margin rules.
- Central bank operations in some jurisdictions.