BNY Mellon Presents New Derivatives Collateral Netting Service for Derivatives Dealers

BNYM Mellon developed a new, first-of-its-kind netting service for derivatives dealers called Derivatives Collateral Net
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The Bank of New York Mellon developed a new, first-of-its-kind netting service for derivatives dealers. Called Derivatives Collateral Net, the service utilizes a patent-pending technology that enables derivatives dealers to post only their net obligations against all other participants in the system, reducing their gross collateral requirements.

This innovative service, which the company is currently enrolling participants in, automatically aggregates and nets overall collateral obligations, minimizing the collateral dealers are required to post and reducing the risks and costs associated with derivative transactions.

“Derivatives Collateral Net represents the implementation of the International Swaps and Derivative Association’s strategic vision for dramatically reducing the operational challenges associated with the margin process between counterparties. We’re making the process more efficient without affecting the fundamental bilateral nature of the credit relationship between the parties,” says Art Certosimo, executive vice president and head of Broker-Dealer Services at The Bank of New York Mellon. “This service spotlights our unique ability to utilize our collateral management expertise and technology to anticipate and serve the emerging needs of our derivatives dealer clients.”

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