Triparty agent

A triparty agent structure yesterday

One who manages a tri-party collateral system. A custodian who opens separate accounts in the name of a borrower and lender, and transfers collateral between them at their joint instruction, in satisfaction of margin obligations under a separate master agreement.

Very popular with agent lending participants as a handy way of managing collateral flows, as this handy diagram purports to illustrate.

Can be a useful fellow if you want to grant security over a revolving pool of securities and retain a right of substitution. Some useful discussion there at Financial Collateral Regulations.

See also

• Agent lending
• Pledge GMSLA
• Financial Collateral Regulations
• Floating charge
• Fixed charge