One of Canada’s leading corporate and investment banks, RBC Dominion Securities, has chosen Sentry from Algorithmics for collateral management.
“We needed a solution to replace spreadsheet-based monitoring, to control the associated operational and reputational risks, and give us new features, with room to grow,” says Mike Swan, the project manager who managed the implementation at RBCDS. “After a detailed comparison of competitive products, plus a close look at all the financial and manpower costs entailed in building our own system, Sentry was the clear winner.”
The implementation will automate collateral management processes for derivatives trading at the institution’s Toronto head office, and its New York operations. The Toronto phase of the implementation, which encompasses mid-office and documentation systems, was completed in 10 weeks. When both installations are complete, back office processes in Toronto and New York will be integrated with Sentry.
Swan notes that there is an industry trend to reduce risk through collateralization. RBCDS managers wanted a solution that would help manage the risks inherent in collateralization. In addition, they wanted to benefit from a common platform and practices at their different sites, and improved support for management reporting, collateral rehypothecation, and exposure reconciliation for larger-volume clients.
Michael Zerbs, Vice President of Research and Product Marketing at Algorithmics, commented that “The need for collateral management is growing among large trading organizations. With Sentry, Algorithmics supports collateral management through both standalone and integrated solutions. We’re proud to welcome RBC Dominion Securities as our second customer within the Royal Bank group, joining Algo Market users.”
About RBC Dominion Securities
RBCDS a business unit of Royal Bank Financial Group, is Canada’s leading corporate and investment bank. The firm leverages the expertise of its three divisions – corporate and investment banking, global markets and global equity – on behalf of its clients.
Algorithmics was founded in 1989 in response to the complex issues surrounding financial risk management for the enterprise. Today, it has one of the largest and most experienced teams in the industry. Headquartered in Toronto, with 16 offices around the world, Algorithmics serves more than 120 global clients with 150 installations in 26 countries.