The Bank of New York Mellon, the global leader in asset management and securities servicing, has expanded DM EdgeSM, the company’s derivatives collateral management service, beyond derivatives to cover a wide range of margin-related activities, including repo and securities lending.
DM EdgeSM facilitates for clients the administrative, processing, reinvestment and valuation activities associated with posting and receiving collateral in a tri-party structure for over-the-counter (OTC) derivatives trades.
The new services, which will be marketed under the brand name RM EdgeSM, allow a wide range of clients who trade bilaterally to outsource margin management to The Bank of New York Mellon. The Company will handle a variety of complex operational and administrative activities, such as monitoring margin parameters and calculating margin status, helping clients to reuse and reinvest their collateral pools.
“We have developed state-of-the-art web interfaces for easy access to intra-day calculations, a wide selection of reports, and real-time data margin position updates, all of which help our clients to mitigate credit risk and maximize the use of their collateral,” said Art Certosimo, executive vice president and head of Broker-Dealer and Alternative Investment Services. “As market dynamics change, institutional investors will need to rely on more sophisticated services to reduce risk as well as enhance performance of their assets and we will continue to be the company that meets those needs.”
The Bank of New York Mellon is the leading provider of tri-party collateral management services, servicing more than $1.8 trillion in tri-party balances worldwide. The Bank of New York Mellon’s collateral management services ranked #1 in 2008 by Global Custodian and International Securities Finance magazine.
The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $20.2 trillion in assets under custody and administration, $928 billion in assets under management and services more than $11 trillion in outstanding debt.