The primary clearing banks for tri-party repo in the United States are JPMorgan Chase and Bank of New York Mellon. It holds the securities and ensures that the seller receives cash at the onset of the agreement and that the buyer transfers funds for the benefit of the seller and delivers the securities at maturation. In this arrangement, a clearing agent or bank conducts the transactions between the buyer and seller and protects the interests of each. The most common type is a third-party repo (also known as a tri-party repo).
