The Bank of New York Mellon, the global leader in asset management and securities servicing, has leveraged its strong relationship with Goldman Sachs International, Ltd and Rabobank to serve as collateral agent for the first domestic Korean Equity tri-party financing trade. This is believed to be the first time the tri-party structure has been used to complete a Korean equity financing.
This new mandate spotlights a service used extensively by The Bank of New York Mellon’s clients outside of Korea to support the financing of a wide range of collateralised transactions, including stock loans, derivative transactions, and equity and fixed income repos, including Korean securities.
Acting in its role as intermediary between Goldman Sachs, as lender of securities, and Rabobank, as borrower, BNY Mellon maintains cash and securities accounts, verifies collateral eligibility, marks to market securities pledged as collateral, processes income and provides daily reporting to both parties.
“As the local Asian capital markets continue to evolve, we will collaborate with our clients and industry leaders such as Goldman Sachs and Rabobank to offer innovative securities services. Broker-dealers and investors around the world recognize the economic and risk management benefits of the tri-party structure, as well as the benefits of utilizing the local expertise and execution capabilities of our firm,” says Art Certosimo, executive vice president and head of Broker-Dealer and Alternative Investment Services, BNY Mellon.
The Bank of New York Mellon is the leading provider of tri-party collateral management services, servicing more than $1.7 trillion in tri-party balances worldwide. The company, which has been conducting business in the Asia-Pacific region for more than 50 years, has 13 offices in 11 countries in the region.