BNY Mellon and Pirum integrate tri-party collateral schedules into CollateralConnect

Move falls under BNY Mellon’s Future of Collateral initiative designed to create an harmonised global collateral ecosystem for its clients.

By Jonathan Watkins

Pirum and BNY Mellon have collaborated to integrate the custodian’s digitised tri-party collateral schedules into Pirum’s CollateralConnect service.   

This move will leverage BNY Mellon’s automated delivery service and integrates the firm’s tri-party schedule and collateral acceptability data into Pirum’s collateral eligibility and optimisation services. 

Pirum’s CollateralConnect service provides a real-time, centralised view of margin obligations, digitised eligibility and global inventory management capabilities to manage collateral across all major venues and products, including securities lending, repo and derivatives.

CollateralConnect deploys eligibility checking controls that monitor adherence to collateral schedule criteria. In addition, the service examines collateral allocation compliance with regulatory requirements such as UK CASS, MiFID and Dodd-Frank. 

For BNY Mellon, the move falls within the objectives of its Future of Collateral initiative, designed to create a harmonised global collateral ecosystem that will enable its clients to utilise collateral assets located around the world within one unified collateral environment.

“We’re supportive of financial technology providers like Pirum that connect into existing market infrastructure to enable clients to be more efficient,” said Victor O’Laughlen, digital business leader within clearance and collateral management at BNY Mellon.

“That’s why we are pleased that our digitised tri-party collateral schedules and position eligibility API data is available to our mutual clients, empowering them to optimise the use of their securities inventory.  

“This is what our Future of Collateral digital strategy is all about: building the connections clients need to mobilise their assets, increase the velocity at which those assets move and make their collateral work harder for them.” 

In January 2020, BNY Mellon’s CEO, Todd Gibbons, said the custodian would continue to expand its strategy of partnering with other providers of its clients to tri-party lending and collateral management, as a differentiator. 

BNY Mellon had established multiple partnerships with front-office trading platforms and FinTech firms as part of its ‘open architecture’ platform, with the aim of plugging its custody and fund administration services in with other providers to its clients.