The Bank of New York and the Board of Trade Clearing Corporation (The Clearing Corporation) today announced the introduction of a new program to satisfy margin requirements via The Bank of New York’s global collateral management program, which will help Clearing Corporation participants achieve maximum collateral flexibility.
Through this new program, participants now have the ability to freely trade the collateral allocated to accounts on an intra-day basis at The Bank of New York, with no Clearing Corporation interaction. Participants will continue to have the ability to deposit collateral in multiple locations, and the process for holding collateral outside of The Bank of New York collateral management program will remain unchanged. The Bank’s service is currently restricted to treasuries, but it is anticipated that it will be expanded in the near future to allow the use of other types of securities as collateral.
“The Clearing Corporation is pleased to offer its clearing members the ability to achieve increased efficiencies in collateral management. The Bank of New York’s experience and leading position in collateral management services help to make this program possible,” said David Thome, vice president and chief financial officer of Board of Trade Clearing Corporation.