December 9, 2019 — RBC Investor & Treasury Services (I&TS), part of Royal Bank of Canada (RY on TSX and NYSE), today announced the launch of its Collateral Management service. This innovative middle office solution centralizes and interprets collateral management data to help asset managers comply with BCBS and IOSCO¹ rules for non-cleared derivatives.
Collateral Management is part of RBC I&TS’ evolving Middle Office solution and leverages industry-leading technology provided by CloudMargin via IHS Markit. This technology, combined with RBC I&TS’ specialist asset servicing expertise, has created a powerful solution for its clients, including:
- The centralization of standing settlement instructions and CSA contracts
- The ability to make, receive and monitor margin calls with bilateral counterparts, and determine collateral eligibility
- The validation of incoming collateral calls from bilateral counterparts and enrichment and instructions of movements to third party custodians
- The optimization of inventory availability and waterfall selection of preferred assets to pledge
“New rules around collateral have resulted in asset managers facing increased reporting requirements and significant operational demands” said Joanna Meager, Head of Digital Client Experience, Product & Marketing at RBC I&TS. “In an already competitive environment, this has posed a number of challenges for our clients. RBC I&TS’ new solution enables asset managers to remain competitive by improving their middle and back office efficiencies, transforming their front office decisions through data transparency and mitigating risks of regulatory breaches.”
RBC I&TS has launched the service initially with BIMCOR in Canada.
“We were looking for an automated solution to collateralize our OTC derivative and Repo transactions in order to meet our ISDA/CSA requirements as well as manage our counterparty risk. We were impressed with RBC I&TS’ investments in market leading technology, and connectivity to market utilities to streamline the process. We also greatly appreciated them involving us in the end to end process, from testing to go live” commented Remy Orsoli, Vice President, Finance & Operations at BIMCOR.