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Settlement transaction types

TRPO: Triparty Repo

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TRPO flags a settlement movement that belongs to a triparty repo, seen from the collateral giver who receives the cash. A triparty agent selects, values and moves the collateral, so these movements usually come from the agent’s side.

Code
TRPO

What TRPO means

In a triparty repo the two parties agree the cash amount, the term and a collateral schedule, and a triparty agent (an ICSD or a large custodian bank) picks eligible securities from the giver’s account, moves them to the taker and substitutes them during the life of the deal. TRPO is the repo side of that arrangement: the party that takes the cash and gives the collateral.

The cash provider’s side is TRVO. The difference from REPU is who instructs the collateral: in a bilateral repo each party instructs its own legs, in triparty the agent does it. Triparty movements can carry the agent’s references in sequence A1, such as :20C::TCTR (triparty agent collateral transaction reference) and :20C::CLTR (client’s triparty collateral transaction reference).

When you see it

  • On instructions and confirmations for collateral allocations from the giver’s account under a triparty repo.
  • In the collateral giver’s MT536 and MT537 statements, where the moves out of and back into its account appear.

What to do next

  • Use TRPO only when a triparty agent manages the collateral; a bilateral repo is REPU. Under EU CSDR, CSDs report settlement fails per type of transaction (purchase or sale, collateral management, securities lending and borrowing, repo, other), and custodians such as BNY pass the instructed SETR code to the CSD for that reporting. A financing or collateral movement sent as TRAD lands in the wrong bucket.
  • When you reconcile, match triparty movements on the agent’s references rather than on your own deal reference, because the agent may split and substitute collateral many times during one repo.
  • Some custodians never apply automatic partial settlement to this type: BNY lists SECL, SECB, SLRE, SBRE, OWNI, TURN and the repo codes among the transactions it always instructs with NPAR.

Where it appears in MT and ISO 20022

MT (ISO 15022)

  • MT540, MT541, MT542 and MT543: sequence E (SETDET), field 22F, :22F::SETR//TRPO. The SETR qualifier is mandatory, so every instruction carries one code (format :4!c/[8c]/4!c; with a data source scheme a proprietary code may be sent instead).
  • Repeated in the confirmations MT544, MT545, MT546 and MT547 (sequence E, :22F::SETR//TRPO) and in the MT548 status advice (sequence B, where SETR is mandatory when the sequence is present).
  • Optional in the statements: MT536 subsequence B1a2 and MT537 subsequences B2b and C2.
  • Two-leg terms go in sequence D (block REPO) of MT540 to MT543: :98a::TERM closing date, :20C::SECO second-leg reference, :92A::REPO rate, :19A::TRTE termination amount.

MX (ISO 20022)

  • sese.023: SttlmParams/SctiesTxTp/Cd = TRPO (code list SecuritiesTransactionType23Code, unchanged in sese.023.001.09 to .013). SttlmParams/SctiesTxTp/Prtry carries a proprietary code instead.
  • Echoed in sese.024 at TxDtls/SttlmParams/SctiesTxTp/Cd and in sese.025 at SttlmParams/SctiesTxTp/Cd.
  • sese.023 also carries the triparty references in SttlmTpAndAddtlParams/TrptyAgtSvcPrvdrCollTxId and SttlmTpAndAddtlParams/ClntCollTxId.