A tri-party repo involves a custodian bank holding collateral for a broker/dealer and their client without physically transferring it. The custodian bank issues a confirmation using common identifiers to specify the pledged collateral for the repo contract between the broker/dealer and client. Allocation trades from the client are then matched against the dealer confirmation held by the custodian bank.

1. CASH
INVESTOR
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CLEARING
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CALYPSO
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Allocation Trades
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Allocation Trades
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Allocations (rematch)
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ProprietaryInfo
Tri-Party Repo
> A custodian bank or international clearing organization acts as an intermediary between the two parties to the Repo and
holds the collateral.
> Collateral is not moved between the broker/dealer and buy-side firm. Collateral is later specifically identified by a
confirmation from the custodian bank holding the securities pledged to the Triparty Repo contract.
> The Tri-Party Repo confirmation is identified using General collateral CUSIPS or In-House identifiers familiar to both the
broker/dealer and its client.
> Allocations will match against the dealer confirmation.