RBC, TMX and Clearstream collaborate in triparty pledge solution
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RBC, TMX and Clearstream collaborate in triparty pledge solution 30 May 2025Canada Reporter: Karl Loomes
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RBC Investor Services has collaborated with TMX Group and Clearstream, to pioneer a triparty pledge collateral management solution.
The effort comes as an expansion of the Canadian Collateral Management Service (CCMS), in a move the companies say will extend its optimisation benefits, and further enhance market liquidity by reducing intraday financial resources.
The firms see this as an important expansion of the CCMS into facilitating pledge transactions in securities lending, and one which comes as a key step to fully mobilise and optimise collateral within the Canadian market.
Talking about the collaboration Steve Everett, head of post trade innovation at TMX Group, says: "Canada's first Triparty pledge initiative significantly enhances our existing CCMS Repo and securities lending capabilities by introducing an advanced pledge mechanism to complement the existing services.
"This innovative approach streamlines securities pledging, leading to increased efficiency and optimized balance sheet management. Specifically, it replaces the traditionally cumbersome, line-by-line booking of individual pledges with a fully automated, end-to-end process. Moreover, it offers real-time collateral substitution across the entire CCMS, enabling flexible management of trading obligations, optimisation of collateral and enabling enhanced inventory management in an unlimited capacity."
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