BNY Mellon and Pirum launch new collateral optimisation service

New service ECPOConnect is aimed at driving improved risk-return outcome, the two organisations have said. 

By Jonathan Watkins

BNY Mellon and Pirum have announced a joint optimisation service to offer collateral providers margining, risk management and inventory management. 

The solution named ECPOConnect combines BNY Mellon’s industry collateral management service, ECPO with Pirum’s CollateralConnect platform, in an initiative the firms said would ‘drive improved risk-return outcomes’. 

The new service will reportedly enable industry participants to reduce liquidity, exposure and funding costs globally.   

In a statement, the firms added that the platform also addresses firms’ need to centralise collateral management across multiple locations and business lines, including securities lending, repo and derivatives.  

ECPOConnect will offer near real-time connectivity to enable automation and straight-through processing, intraday management of cross-product margin requirements, on-demand execution of collateral coverage and automated mobilisation of inventory to meet obligations on a global basis. 

“We are pleased to bring an innovative optimisation solution to the market that will help our clients improve their profit margins,” said Victor O’Laughlen, digital business leader at BNY Mellon. “We have already put this powerful tool to work using real client data, and the results have clearly shown major efficiencies for clients navigating an increasingly-connected marketplace.” 

BNY Mellon has invested heavily into its collateral management capabilities recently, including new hires, ESG analytics and investments into third-party fintechs. 

Earlier this year it was also announced that Pirum’s CollateralConnect, an enterprise-wide, cross-asset collateral management service, now includes BNY Mellon’s North American collateral schedules. 

Phil Morgan, CEO at Pirum, said, “ECPOConnect is an innovative solution offering industry participants a flexible set of optimisation solutions to fit their needs. Combining Pirum’s capabilities with ECPO, clients gain immediate benefits through more efficient funding, liquidity and capital management.”