BNY Mellon Launches the Collateral Universe(SM)
Sep 26, 2013
BNY Mellon CSD receives Securities Settlement System status
New Collateral Aggregator offering unveiled
NEW YORK and LONDON, September 26, 2013 — BNY Mellon, the global leader in investment management and investment services, has announced the launch of the Collateral Universe(SM), the company's suite of second generation collateral management capabilities and solutions, designed to help buy-side clients manage the impact of regulatory change on their investment processes.
The BNY Mellon Collateral Universe combines the company's comprehensive range of collateral management and related solutions with the benefits provided by its central securities depositary - BNY Mellon CSD - and its new Collateral Aggregator.
"For market participants, the current and future regulatory reforms pertaining to derivatives and capital are expected to contribute to collateral and liquidity shortfalls, as well as increased funding costs and operational complexity. These challenges have prompted the buy-side to explore new ideas, tools and partners," said Kurt Woetzel, chief executive officer of BNY Mellon's Global Collateral Services business.
Nadine Chakar, head of product development & strategy, Global Collateral Services at BNY Mellon added: "We have transformed our business model, investing in new capabilities specifically to address the new challenges facing market participants. Our Universe provides the next generation of collateral solutions and demonstrates BNY Mellon's leadership and innovation."
BNY Mellon's Collateral Universe encompasses collateral management solutions including segregation, optimization, aggregation, securities financing, liquidity management, consulting, derivatives lifecycle management and reporting.
Established to help clients address new regulations including Basel III, EMIR, AIFMD and MiFID as well as the advent of T2S, BNY Mellon's Brussels-based CSD has received a Belgian Royal Decree granting it Securities Settlement System (SSS) status. As an SSS, BNY Mellon CSD is formally recognized to be an appropriate system under EMIR Article 47.3 for the holding of financial instruments as margins or as default fund contributions for CCPs, an important component in assisting clients to reduce their risk in line with the EU Settlement Finality Directive.
In May, the CSD signed a framework agreement with the Eurosystem to allow it to outsource settlement to the T2S platform. As a direct T2S participant, the CSD will have the opportunity to leverage, among other capabilities, the settlement platform’s auto collateralization program for central bank money and its collateral pooling facilities to help speed up the velocity of collateral within global markets.
Another key feature of the Collateral Universe will be the new Collateral Aggregator, a leading-edge platform that offers clients a consolidated and highly transparent view of all their available collateral, and all their collateral positions and related activities, held with BNY Mellon.
Through the Aggregator, buy-side clients will be able to enhance their ability to manage their collateral and counterparty exposures via a single portal. Clients will be able to easily identify, manage, assess and forecast their global collateral holdings.
Global Collateral Services offers a comprehensive suite of capabilities to help its clients address their collateral, liquidity and securities financing needs. As they face evolving global regulations and rapidly changing market requirements, clients can leverage BNY Mellon's products and services to better manage counterparty and market risk in their collateral transactions, engage in more investment opportunities to help maximize their investment returns and access new financing alternatives. BNY Mellon currently services $2 trillion in global collateral (including tri-party repo collateral worldwide) and approximately $100 billion in assets through its Liquidity DIRECT(SM) investment portal, and operates one of the industry's largest securities lending programs, with $3 trillion in lendable assets
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of June 30, 2013, BNY Mellon had $26.2 trillion in assets under custody and/or administration, and $1.4 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on http://www.bnymellon.com/, or follow us on Twitter @BNYMellon.