BNY Mellon Awarded Patent for Collateral Management Product

BNY Mellon has been awarded a patent from the United States Patent and Trademark Office for its Margin DIRECT service.

Margin DIRECT was created by BNY Mellon to help clients limit exposure to trading counterparties. The patented Margin DIRECT product provides custody and liquidity services for posted margin collateral in counterparty transactions, mitigating risk between counterparty relationships and facilitating marketplace liquidity through the use of a third-party custodian. The named inventor in the patent is Jonathan Spirgel, head of liquidity services and sales and relationship management, Global Collateral Services at BNY Mellon.

“One of the most important lessons learned from the financial crisis is that institutions require capabilities that help maximize liquidity and access to collateral,” said Kurt Woetzel, CEO of BNY Mellon’s Global Collateral Services business. “With today’s new regulatory requirements, there is an increased emphasis on collateral—clients need to know where to find it, how to protect it and how to unlock additional investment potential, while also working to reduce counterparty exposure.”