The Bank of New York has passed the $1.5 trillion mark in its daily servicing of tri-party balances worldwide. The bank reports that it is the first tri-party collateral management provider to reach that milestone.
In the past two years, BNY has experienced a 50% increase in tri-party balances globally, with rapid growth in the international markets in which balances grew from $154 billion in 2005 to nearly $300 billion today. In the United States, balances grew from $827 billion in 2005 to $1.25 trillion currently.
“We have witnessed consistently strong demand from both broker dealers and institutional investors who value the administrative, risk management and cost advantages that our tri-party collateral management services deliver,” said Art Certosimo, executive vice president and head of broker-dealer services at BNY. “We expect significant growth in our business moving forward as international demand, especially in Asia, continues to increase and we introduce innovative services that meet clients’ emerging needs, such as our new derivatives margin management service and our US whole loan tri-party offering.”
BNY recently introduced a derivatives margin management service that facilitates for clients the administrative, processing, reinvestment and valuation activities associated with posting and receiving collateral in connection with over-the-counter (OTC) derivatives trades.