RBC Investor & Treasury Services says it has launched a solution to monitor and stress test collateral liquidity. This will help firms comply with new collateral requirements as prescribed by the European Securities Markets Authority (ESMA), it says.
The Collateral Risk Report will provide assistance to clients with their regulatory requirements by monitoring and measuring the eligibility and diversification of collateral received in relation to OTC transactions and EPM techniques, says RBC. The tool will also provide liquidity stress testing whenever a fund’s aggregated collateral exceeds thirty percent of the fund’s net asset value, in accordance with the ESMA Guidelines, it adds.
Joanna Meager, global head, client operations and head, Investor & Treasury Services UK, said: “New regulations are driving clients to reconsider the way they manage their collateral and associated reporting processes. Our Collateral Risk Report helps users to meet these evolving requirements while optimising operational efficiency, mitigating risks and reducing cost.”