Finadium
March 2021

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The financial services industry’s reliance on tri-party as a utility for facilitating operationally intensive transactions has grown in both geography and product diversity, which in turn increases the need for awareness about tri-party operations and market trends. The global tri-party market size is US$6.15 trillion, up from US$4.65 trillion in 2017, according to Finadium analysis.

This survey covers six leading participants in tri-party: ASX, BNY Mellon, Clearstream, Euroclear, J.P. Morgan and SIX, utilizing data provided by the tri-party agents themselves. The results cover assets in tri-party sliced by region, product type and the composition of collateral held. These data provide an important input to broader regional efforts to size bilateral financing markets. The results also present operations and supported security types, and we hear from tri-party agents on upcoming market trends.

This report is useful reading for any participant in financial markets that utilize a collateralized trading product. While this was traditionally limited to repo and securities lending, the mandate of tri-party has expanded to include collateralization of other products that benefit from outsourcing back office processes. Cash and collateral providers including money funds and dealers, technology vendors, regulators and tri-party providers themselves may find the report useful for assessing the dynamics of tri-party operations in the context of a changing financial markets environment.

Table of Contents

  • Executive Summary
  • The Role of Tri-party in Financial Markets
  • Market Sizing
    • – Geographic Breakdown
    • – Product Analysis
    • – Comparing Survey Data to Public Data
  • Collateral Capabilities
  • Other Operational Functionalities
    • – Pricing, Margin and Transparency
    • – Fee Schedules
    • – Interoperability
  • Market Trends
    • – Blockchain and ISDA’s Common Domain Model
    • – Engagement with China
    • – Buy-side Growth, UMR and the Pledge Model
  • About the Author
  • About Finadium LLC
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