BNY Mellon has brought together its collateral management capabilities in a new service designed to help broker-dealers and institutional investors with their collateral management needs as a result of current and emerging regulatory and market requirements.
Basel III and Dodd-Frank will require additional collateral deposited between trading partners.
Global Collateral Services brings together BNY Mellon’s global capabilities in segregating, allocating, financing and transforming collateral on behalf of clients, including its broker-dealer collateral management, securities lending, collateral financing, liquidity and derivatives services teams. Global Collateral Services will be led by Kurt Woetzel, senior executive vice president and head of Global Operations and Technology.
“Global regulations and changing market dynamics are mandating new and complex requirements for the use of collateral, which are forcing both sell-side and buy-side firms to reevaluate their need for and use of collateral,” said Gerald Hassell, chairman, president and chief executive officer. “We have a compelling opportunity to build on our industry leading position in this space given the clear and growing client requirements for secure, efficient and reliable collateral services.”
BNY Mellon operates a proprietary global collateral management technology platform designed to efficiently handle all asset types denominated in any currency. The platform processes a range of transaction types, including derivatives, tri-party repurchase agreements, portfolio swaps, and collateralized loans, as well as a wide variety of margin management activities.
(JDC)