BNY Mellon Sees 97% Reduction in Tri-Party Repo Risk

BNY Mellon has reduced secured credit extended in the tri-party repo market by $1.44 trillion, or 97%, as part of its programme to reform the U.S. tri-party repo market.
By Joe Parsons(2147488729)
BNY Mellon has reduced secured credit extended in the tri-party repo market by $1.44 trillion, or 97%, as part of its programme to reform the U.S. tri-party repo market.

In addition to the intraday credit reduction, the bank has also introduced a range of enhancements such as automated deal matching, auto collateral exchanges and rolled trade functionality.

This allows market participants to benefit from improved timing and transparency of such trades, and upgrades the way collateral is optimized and allocated.

“Through a comprehensive set of operational and technology improvements, as well as the strong partnership with our clients and other market participants, we have significantly reduced systemic risk and positioned our clients for success moving forward in this market,” says Brian Ruane, CEO of Broker-Dealer and Tri-Party Services, BNY Mellon.

BNY Mellon is looking to align its technology and business teams to help continue the transformation of the bank’s tri-party repo offerings.

“In addition to properly aligning our technology and business resources, keys to the program’s success included the systematic phasing in of incremental solutions, creating close partnerships with clients and industry participants in defining and confirming requirements, communicating actively with all stakeholders throughout the process, and delivering value-added capabilities that drove adoption,” adds Kevin Fedigan, CIO, Broker-Dealer Services at BNY Mellon.

«