BNY Mellon has been assigned responsibility for the U.S. Treasuries’ European Market Infrastructure Regulation (EMIR) compliant clearing and custody services within Nasdaq OMX Group’s new European clearing business.
Like Dodd-Frank in the U.S., EMIR involves the migration of OTC derivatives from bilateral clearing to central counterparty (CCP) clearing. The new mandate extends BNY Mellon’s current responsibilities at Nasdaq OMX from existing simply as one of the exchange’s current cash settlement banks to facilitating this migration.
“The changes brought about by Dodd-Frank and EMIR have created a pressing need for the industry to identify and implement solutions to manage liquidity and reduce costs,” says Scott Coey, head of broker-dealer services EMEA at BNY Mellon. “Nasdaq OMX Clearing’s decision to expand our valued relationship to include our comprehensive clearing and custody solutions illustrates the depth of support and expertise we can offer our clients across the investment lifecycle.”
“BNY Mellon demonstrated to us that it has the market position and experience in the US treasury market required to provide effective clearing and custody support,” says Johan Rudén, head of global post-trade at Nasdaq OMX. “The company has proven its commitment to providing excellent service to us and our clients. BNY Mellon’s support will be invaluable as we build our market position following the launch later this year.”