BNY Mellon and CIBC Mellon Merge Securities Lending Operations

The integration expands BNY Mellon’s Securities Finance business, which now incorporates desks in New York, Pittsburgh, Toronto, London and Hong Kong.

A press release from the two organizations says the objective of the project is to leverage the Canadian expertise at CIBC Mellon and the global market expertise of BNY Mellon to the mutual benefit of the respective client base. The merger is the culmination of a 17-year
 relationship between BNY Mellon and CIBC Mellon in bringing global clients to Canada and enabling Canadian clients to access more than 100 markets around the world via the BNY Mellon global network, it added.

James Slater, global head of Securities Finance at BNY Mellon, says: “As an enhancement to BNY Mellon’s global leadership position within the securities finance industry, this integration builds on our respective strengths, broadens our capabilities in the markets we serve and provides our clients with an ever-increasing level of trading expertise and even deeper coverage.”

Rob Ferguson, senior vice president, Capital Markets, CIBC Mellon, says: “The alignment of our trading desk teams represents the culmination of years of working together as partners in the 
CIBC Mellon joint venture. This integration enhances client service across both organizations, with the significant resources and scale of two globally recognized securities lending programs The 
BNY Mellon and CIBC Mellon project teams have worked closely to ensure a seamless integration for our respective clients.”

The project combines more than $2.5 trillion in lendable assets and outstanding loan balances of approximately $250 billion in BNY Mellon’s Securities Finance Business, part of the Global Collateral Services division in Investment Services, with approximately CAD$500 billion in lendable assets and CAD$60 billion on loan.

CIBC Mellon’s deep expertise in the Canadian market will be available to BNY Mellon clients, providing the potential for improved returns on Canadian securities, says the press release.

As part of the project, trading and lending agent functions will transition to BNY Mellon’s Securities Finance group and will be managed within BNY Mellon’s Global Collateral Services group within the company’s Investment Services division.

James Slater will be head of Securities Finance for BNY Mellon. The traders on CIBC Mellon’s securities lending desk, led by Phil Zywot, vice president and head of Trading, will be incorporated as the Canadian arm of BNY Mellon’s global securities lending operation, and all members of the trading desk will report to Rob Chiuch and Nancy Sullivan.

Non-trading Canadian securities lending activities remain with CIBC Mellon, which will continue to provide client service, and a range of other non-trading functions including operational support, compliance, legal and risk management.

Rob Ferguson will retain leadership and oversight over securities lending client service in Canada, as well as the various non-trading functions related to securities lending.

Other than the trading staff transitioning to the BNY Mellon securities finance team, CIBC Mellon’s management and reporting structures related to securities lending are unchanged.