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Triparty agent: Difference between revisions
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[[File:Triparty Diagram.png| | [[File:Triparty Diagram.png|center|450px|thumb|A triparty agent structure yesterday]] | ||
}} | }}“Tri-party.” It sounds such ''fun'', doesn’t it? | ||
“Tri-party.” It sounds such ''fun'', doesn’t it? | |||
One who manages a [[tri-party collateral arrangement]]. A useful fellow if you want to grant [[Security interest|security]] over a revolving pool of collateral securities and retain a right of substitution. Some useful discussion there at [[Financial Collateral Regulations]]. | One who manages a [[tri-party collateral arrangement]]. A useful fellow if you want to grant [[Security interest|security]] over a revolving pool of collateral securities and retain a right of substitution. Some useful discussion there at [[Financial Collateral Regulations]]. | ||
Often [[triparty agent]]s are behemoth banks like JPMorgan, Bank of New York Mellon, or clearing systems like Euroclear. | Often [[triparty agent]]s are behemoth banks like JPMorgan, Bank of New York Mellon, or clearing systems like Euroclear. | ||
Negotiating in a triparty arrangement can be quite the three-legged race. It can be like dealing with an architect and a builder who blame each other every time the ceiling collapses. | |||
===How it works=== | ===How it works=== | ||
See handy diagram over yonder ==>. | See handy diagram over yonder ==>. | ||
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Note - after the [[Basel III]] reforms, it has become expensive for [[broker]]s to post (haircutted) {{tag|collateral}} by [[title transfer]] because they pick up [[LRD]] exposure to the Lender for the return of excess {{tag|collateral}} - becuase they are an unsecured creditor, see? Many are moving to a [[pledge GMSLA]] for agent lending arrangements (ithe pledge GMSLA only makes commercial sense for a {{gmslaprov|Lender}} (like an [[agent lender]] who has no need to [[reuse]] the collateral) | Note - after the [[Basel III]] reforms, it has become expensive for [[broker]]s to post (haircutted) {{tag|collateral}} by [[title transfer]] because they pick up [[LRD]] exposure to the Lender for the return of excess {{tag|collateral}} - becuase they are an unsecured creditor, see? Many are moving to a [[pledge GMSLA]] for agent lending arrangements (ithe pledge GMSLA only makes commercial sense for a {{gmslaprov|Lender}} (like an [[agent lender]] who has no need to [[reuse]] the collateral) | ||
{{ | {{sa}} | ||
*[[Account control agreement]] | |||
*[[Agent lending]] | *[[Agent lending]] | ||
*[[Pledge GMSLA]] | *[[Pledge GMSLA]] | ||