Collateral Method- Receiver validating recd coll.

Non-Cash Triparty Agent>

Status: Under Review, Last Updated: 15/01/2021

Non-Cash Triparty Agent
Collateral, in the form of securities/assets, is delivered by the borrower to a third party under a collateral arrangement with the lender.

Borrower and lender agree a daily collateralisation Required Value (RQV) which is then passed to a triparty agent. The triparty agent will then allocate the necessary appropriate securities/assets to the lenders (collateral takers) collateral account at the triparty agent. Both parties are then advised of the successful transfer through an agreed mechanism/function.

The collateral receiver should independently validate that the collateral is correctly valued and defined as eligible according to a pre-defined collateral schedule. Collateral giver should also validate/reconcile the valuation applied. (IBP-325)