BNY Mellon has linked up to MarginSphere, the electronic margin call system enabling institutional clients to transmit margin calls, substitution instructions and interest statements electronically.
On the system, all activity is time stamped with an audit trail, creating more transparency and potentially reducing risk.
“As one of the world’s leading providers of collateral management services, we recognize the need to help streamline the margin process in a way that is compliant with emerging risk management infrastructures,” says James Malgieri, head of Global Collateral Management and Securities Clearance at BNY Mellon. “The new service automates collateral communications with counterparties and provides secure electronic management of margin calls, substitutions, and interest statement processing.”
Other firms to have joined MarginSphere include Bank of America Merrill Lynch, Barclays, Credit Suisse and Morgan Stanley, who joined in March after the first group of firms, including Deutsche Bank, Goldman Sachs, HSBC and J.P. Morgan, which helped develop the platform.
On the buy side, Bluebay Asset Management, Cheyne Capital Management and Goldman Sachs Asset Management joined in February.
The service will also help clients comply with regulations such as Dodd-Frank, EMIR and others.
“A wave of new regulations is reshaping the over-the-counter derivatives market, and our new messaging platform is just one way we are helping our clients prepare and adapt to the new requirements in the marketplace,” says Scott Linden, managing director of BNY Mellon’s Global Collateral Management Services business.
Global Custodian featured MarginSphere in the Winter Plus 2012 feature How to automate a margin call.
BNY Mellon provides collateral solutions to dealers and investors with more than $1.8 trillion in tri-party balances around the world.
(CG)