SARB to introduce triparty collateral management model
08 September 2025 South Africa
Image: Four888/stock.adobe.com
The South African Reserve Bank (SARB) has announced plans to modernise its collateral management infrastructure through the introduction of a triparty collateral management (TCM) agency model.
According to the Bank, an implementation roadmap is in place, with a Proof of Concept launching in September, followed by a position paper and market feedback
The objective is to achieve a more efficient collateral market where assets can move more easily between participants, risks are managed in real time, and funding costs are reduced.
The announcement was made by Rashad Cassim, deputy governor of SARB, who indicated that this reform would 鈥渂ring South Africa鈥檚 collateral markets closer to global standards and make them more resilient in times of stress鈥�.
In his speech at a recent Annual Financial Markets event in Johannesburg, Cassim said: 鈥淕lobally, financial markets are increasingly relying on collateralisation to limit credit risk.
鈥淥ur domestic markets, however, are plagued with market frictions, infrastructure gaps, legal ambiguities and restricted access, which hamper the use of collateral.鈥�
The SARB is actively pursuing reforms to address these bottlenecks with initiatives such as enabling triparty collateral management, and expanding repo functionality at the Johannesburg Stock Exchange (JSE).
Further, the Bank aims to clarify the legal treatment of repos and explore regulatory changes that would allow a wider set of participants 鈥� such as money market funds (MMFs) 鈥� to contribute liquidity.
According to the Bank, an implementation roadmap is in place, with a Proof of Concept launching in September, followed by a position paper and market feedback
The objective is to achieve a more efficient collateral market where assets can move more easily between participants, risks are managed in real time, and funding costs are reduced.
The announcement was made by Rashad Cassim, deputy governor of SARB, who indicated that this reform would 鈥渂ring South Africa鈥檚 collateral markets closer to global standards and make them more resilient in times of stress鈥�.
In his speech at a recent Annual Financial Markets event in Johannesburg, Cassim said: 鈥淕lobally, financial markets are increasingly relying on collateralisation to limit credit risk.
鈥淥ur domestic markets, however, are plagued with market frictions, infrastructure gaps, legal ambiguities and restricted access, which hamper the use of collateral.鈥�
The SARB is actively pursuing reforms to address these bottlenecks with initiatives such as enabling triparty collateral management, and expanding repo functionality at the Johannesburg Stock Exchange (JSE).
Further, the Bank aims to clarify the legal treatment of repos and explore regulatory changes that would allow a wider set of participants 鈥� such as money market funds (MMFs) 鈥� to contribute liquidity.
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