The Global Triparty Services Market in 2024: A Finadium Survey
Finadium
July 2024
Finadium conducted a survey of triparty agents (TPAs) on balances, collateral holdings, operational functionalities, market and regulatory priorities and client growth trends in April 2024. This report provides details on the global TPA business as reported by agents themselves and is part of our regular series of triparty agent surveys starting in 2014.
The survey results show a steady increase in triparty agents’ asset holdings to US$9.26 trillion. The figure is notable not just for its size but also in spite of a decrease of nearly US$1.5 trillion in assets from the Federal Reserve’s Reverse Repo Facility. The continued growth of triparty shows the importance of this service to market participants across geographies and products, as well as the impact of higher interest rates in Europe and the US.
Triparty agents are increasingly central to the functioning of global financial markets; the more assets they support, the more that clients are relying on them to deliver outsourced collateral movement and valuation services. A demonstrated increase in interoperability, where collateral optimization and analytics can be applied to assets held with any triparty agent, custodian or central securities depository, is intended to support clients in driving further balance sheet efficiencies. TPAs are also working to deliver greater visibility and control to clients interested in managing triparty activity more closely.
This survey shows part of the depth and scale of triparty activities today. It should serve to assist market participants with gaining a better understanding of the current state of the triparty business model.
Table of Contents
- Executive Summary
- A Story of Higher Rates
- Market Sizing
- – Geographic and Product Breakdown
- – Comparing Survey Data to Public Data
- Collateral, Term and Pledge
- Planning for Market Developments
- – Interoperability
- – Regulatory Priorities
- Client Growth Trends
- About Finadium LLC