Tri-Party Agent Collateral Platform Outage — severe-but-plausible scenario — ITOL

Vector: Third-Party & Concentration · Severity: severe

The tri-party (tri-party repo) agent's collateral platform fails on a Friday afternoon. The ≈ $35B repo book can neither unwind nor roll. Time-specific obligations queue against the Fedwire Securities close. The money funds and dealers on the other side of every trade open their own funding gaps within the hour.