Securities Finance Times organized a virtual panel of experts—including Kyle Kolasingh, Head, Market Services Solutions—to look at the Canadian securities lending markets and how structural change, collateral optimization and artificial intelligence (AI) adoption are set to change the securities finance landscape.
Here are some highlights of the discussion:
- Canada’s more than CAD 3 trillion securities lending market remains well-diversified and resilient, with retail integration emerging as the next major wave of supply. While the US fully paid lending market is large and growing, Canada’s market is still in its early stages.
- AI integration is shifting securities finance teams from manual processing toward strategic oversight, with the greatest payoff anticipated during periods of market dislocation.
- Canadian Collateral Management Services and CDCC central clearing advances are set to resolve collateral mobility friction and reduce balance sheet constraints for all market participants.
- As the No. 1 lender of Canadian government bonds, RBC Investor Services applies rigorous intraday liquidity management, including renewed tri-party repo procedures for the Receiver General morning auction.
- Project Samara demonstrated end-to-end tokenized bond issuance via distributed ledger technology, with broader adoption expected to deliver operational alpha over the next three to five years.
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