Glossary

A B C D E F G H I L M N O P R S T V

TERM REPO: A repo with a maturity of more than one day after its value date.
TERM TRANSACTIONS: Trades with a fixed maturity date.
THIRD PARTY AGENCY LENDING: Where the agent lends securities on behalf of a beneficial owner and the agent has autonomy over the transaction. The agent also takes responsibility for the marking to market of collateral (cash or non-cash) margin calls and investing of cash collateral. Revenues are then shared between client and agent.
THIRD-PARTY LENDING: The system whereby an institution lends directly to a borrower and retains decision-making power, while all administration (settlement collateral monitoring, and so on) is handled by a third party, such as a global custodian.
TRIPARTY REPO: Repo used for funding/investment purposes in which bonds and cash are delivered by the trading counterparts to an independent custodian bank or clearing house (the 'Triparty Custodian") that is responsible for ensuring the maintenance of adequate collateral value, both at the outset of a trade and over its term. The Triparty Custodian marks the collateral to market daily and makes margin calls on either counterpart, as required. Triparty repo reduces the operational/systems barriers to participating in the repo markets.