System facilitating tri-party repurchase agreement transactions

Abstract

In accordance with at least one embodiment, a system configured to provide a collateral management service for tri-party hybrid repo transactions includes hardware and/or software for receiving, at a repo service provider, instructions specifying a tri-party hybrid repo transaction as well as a payable date for the tri-party hybrid repo transaction; hardware and/or software for transferring collateral that is the subject of the tri-party hybrid repo transaction on or prior to the payable date to a buyer/investor for the tri-party hybrid repo transaction in the buyer/investor's Securities Account at the Federal Reserve Bank via the Fedwire Securities Service and free of payment or versus payment; and hardware and/or software for returning collateral on or prior to the payable date to the broker/dealer/seller for the tri-party hybrid repo transaction via the repo service provider versus payment via the Fedwire Securities Service.

1 . A system configured to provide a collateral management service for tri-party hybrid repo transactions, the system comprising:
 hardware and/or software for receiving, at a repo service provider, instructions specifying a tri-party hybrid repo transaction as well as a payable date for the tri-party hybrid repo transaction;   hardware and/or software for transferring collateral that is the subject of the tri-party hybrid repo transaction on or prior to the payable date to a buyer/investor for the tri-party hybrid repo transaction in the buyer/investor's Securities Account at the Federal Reserve Bank via the Fedwire Securities Service and free of payment or versus payment; and   hardware and/or software for returning collateral on or prior to the payable date to the broker/dealer/seller for the tri-party hybrid repo transaction via the repo service provider versus payment via the Fedwire Securities Service.   
     
     
         2 . The system of  claim 1 , wherein the means for transferring collateral to the buyer/investor free of payment further comprises:
 hardware and/or software for allocating the broker/dealer/seller's collateral for transfer to the buyer/investor's Securities Account;   hardware and/or software for transferring the collateral positions via the Fedwire Securities Service to the buyer/investor's Securities Account at the Federal Reserve Bank.   
     
     
         3 . The system of  claim 2 , wherein, subsequent to the allocation of the collateral to the buyer/investor, collateral positions are reported periodically to the buyer/investor. 
     
     
         4 . The system of  claim 1 , wherein the means for returning the collateral to the broker/dealer/seller further comprises means for transferring the collateral back from the buyer/investor's Securities Account to the repo service provider's Securities Account versus crediting by the repo service provider of the transaction proceeds to the buyer/investor's DDA at the repo service provider. 
     
     
         5 . The system of  claim 1 , wherein the broker/dealer/seller is paid out of the buyer/investor's demand deposit account (DDA) at the repo service provider. 
     
     
         6 . The system of  claim 1 , wherein, prior to the payable date of the tri-party hybrid repo transaction, the tri-party repo transaction becomes a delivery repo transaction. 
     
     
         7 . The system of  claim 1 , wherein a demand deposit account (DDA) is opened for the buyer/investor at the repo service provider. 
     
     
         8 . The system of  claim 1 , wherein a Securities Account at the Federal Reserve Bank is designated for facilitating delivery repo transactions for the buyer/investor. 
     
     
         9 . The system of  claim 1 , further comprising at least one of an information access system and a delivery portal implemented by the repo service provider, wherein the collateral that is the subject of each tri-party hybrid repo transaction is available for view and download via the at least one of the information access system and the delivery portal implemented by the repo service provider. 
     
     
         10 . The system of  claim 1 , wherein the means for receiving instructions specifying a tri-party hybrid repo transaction further comprises means for matching instructions from the buyer/investor and the broker/dealer/seller. 
     
     
         11 . The system of  claim 1 , wherein return of the collateral via delivery repo appear as a tri-party unwind for the broker/dealer/seller. 
     
     
         12 . The system of  claim 1 , wherein the buyer/investor for the tri-party hybrid repo transaction receives the collateral prior to the payable date and returns the collateral to the dealer on the payable date.