The Global Principles for Sustainable Securities Lending (Global PSSL) CIC finds that RISC Managed Treasury Pool Notes Merganser-1 could add ‘significant’ value to securities lending.
The finding came from Global PSSL’s review of the RISCMTP-Notes, which highlighted that this benefit to securities lending could be attained by offering alternative liquid collateral instruments.
Alongside this, the review identified that the notes could play a ‘positive role’ in shaping global sustainable financial markets and contribute to achieving several United Nations Sustainable Development Goals (SDGs).
The RISCMTP-Notes are Moody’s-rated, listed, debt securities. They combine the liquidity of bank deposits with the managed returns of government money market funds (GMMFs).
This exercise was subject to several rounds of peer review with respect to the Global PSSL Principles published in 2021, 17 opening signatories, as well as the constituent elements of the Global PSSL draft forward-looking standard on interconnected collateral for securities lending.
CEO of Global PSSL Radek Stech comments: “This review represents clear evidence that enhanced governance based on the appropriate and thought-through participation of representatives from diverse angles of finance and sustainability can work successfully.”
CEO of RFPS Management (UK) Derrell Hendrix adds: “The positive results from this work are testament to what many of us have believed for a while; that RISCMTP-Notes can serve a pivotal role in delivering strong sustainability outcomes in the securities and collateral sectors.
“The strong independent governance at the heart of this review has been a key factor in delivering a united, yet impartial, opinion from multiple stakeholders.”
