BNY Mellon has introduced a new service to its corporate trust clients that will allow for the simultaneous transfer of a client’s cash and loan assets on the agreed settlement date.
Loan/SERV Cash on Transfer helps clients manage risk around cash transfer and reduces both the administration and fee costs associated with multiple transactions. The service supports US dollar trades and is expected to expand over the next year to support cash settlement in 50 currencies.
MJX Asset Management is the first BNY Mellon client to have settled a trade using the new platform.
“We believe this service will significantly increase settlement time and make the loan closing process even more efficient,” says Pierre Batrouni, managing director at MJX Asset Management. “We are delighted to have participated in piloting this innovation that brings much-needed change to the industry.”
Jocelyn Lynch, managing director of structured products at BNY Mellon Corporate Trust, adds: “Improvements in transparency, efficiency and risk reduction are integral to the continued growth of the loan syndication market, and the new service should increase the efficiency of trading and settlement of this asset class. We will continue to work with key partners to help modernize the syndicated loan market and bring the industry closer to a straight-through processing model.”
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