The paper outlines the SARB’s proposals on the framework and implementation principles of its participation in, and enablement of, a domestic assets Triparty Collateral Management model in South Africa.
The paper seeks to solicit a wider market contribution of what a SARB-enabled domestic assets Triparty Collateral Management framework should entail for the South African financial market.
The framework being proposed is envisaged to play a role in alleviating the below-mentioned Collateral Management challenges:
- increased requirements for secured securities finance transactions;
- increased demand for high-quality liquid assets (HQLA);
- increased scarcity of HQLA due to limited reuse of collateral assets; and
- increased disclosure requirements for collateral usage, collateral inventory management and visibility on the reuse of collateral assets.