BNY Mellon, the global leader in investment management and investment services, is enhancing its collateral management platform for institutional clients with the introduction of an online central messaging service that will enable market participants to transmit margin calls, substitution instructions and interest statements electronically.
To introduce the new enhancements, BNY Mellon has partnered with AcadiaSoft to connect with its electronic margin call system called MarginSphere.
The new service will allow market participants to communicate critical information on exposures and commitments in a real-time and secure manner and provides the ability to produce detailed audit trails of transactions. As a result, it will reduce inefficiencies and operational risk, as well as increase transparency.
“As one of the world’s leading providers of collateral management services, we recognize the need to help streamline the margin process in a way that is compliant with emerging risk management infrastructures,” said James Malgieri, head of Global Collateral Management and Securities Clearance at BNY Mellon. “The new service automates collateral communications with counterparties and provides secure electronic management of margin calls, substitutions, and interest statement processing.”
The service will also help clients facing a wave of increasingly complex regulatory and compliance requirements as a result of the Dodd-Frank, EMIR and other legislative initiatives around the world.
“A wave of new regulations is reshaping the over-the-counter derivatives market and our new messaging platform is just one way we are helping our clients prepare and adapt to the new requirements in the marketplace,” said Scott Linden, managing director of BNY Mellon’s Global Collateral Management Services business.
BNY Mellon is a global leader in collateral management and clearance services. It provides collateral solutions for dealers and investors and currently services more than $1.8 trillion in tri-party balances worldwide. It is a leader in both global securities and US Government securities clearance, clearing and settling equity and fixed income transactions in over 100 markets.
Through Derivatives360, BNY Mellon also offers a broad array of offerings for issuers and investors involving the execution and processing of derivatives. These include trading and execution, derivatives middle office outsourcing services and back-office recordkeeping services. Middle Office services available through Derivatives360 include collateral management, affirmation and confirmation, independent (third-party) valuation, portfolio reconciliation and lifecycle event management. Back-office recordkeeping services include custody, accounting, and consolidated reporting.
