BNY Mellon and Hazeltree will jointly develop an independent treasury and cash management platform for buy-side and corporate firms.
The global custodian will combine its expertise in cash, treasury and custody services with Hazeltree’s advanced treasury management technology.
At a practical level, this will mean that buy-side clients of BNY Mellon will now be able to see all of their cash and collateral balances held across multiple banks and custodians, clearing houses, FCMs/clearing banks and other counterparties aggregated on a single screen.
“At a time of increasingly complex global markets, this integrated platform can make the treasury function a lot more efficient,” said Jonathan Spirgel, head of global liquidity services, BNY Mellon Markets.
“It enhances performance, while ensuring that participants maintain the level of security and liquidity of their assets they rightly expect from BNY Mellon.”
The initiative will also help clients optimise the sourcing of collateral, funding and liquidity.
“Many firms are missing opportunities to optimize their cash usage due to manual and incomplete processes. Our new platform increases transparency into their holdings, minimizes frictional costs and reduces operational risk,” said Sameer Shalaby, president and CEO of Hazeltree.
The platform is set to be phased in to select BNY Mellon clients that will be provided access to both the Hazeltree technology platform and the existing BNY Mellon infrastructure.
In November last year, BNY Mellon established a new global innovation role within its treasury services business, appointing Christopher Mager to lead the initiative.