BNY Mellon to Provide Tri-Party Collateral Management Services for CME Clearing Europe
LONDON, December 12, 2012 — BNY Mellon, the global leader in investment management and investment services, has been appointed to provide tri-party collateral management services for CME Clearing Europe, the European multi asset class clearing house, to provide a comprehensive collateral service supporting buy-side, sell-side and clearing houses.
Services will be provided through MarginEdge™, BNY Mellon's comprehensive derivatives margin management service for listed, OTC and bi-lateral OTC derivatives. MarginEdge™ provides clients, clearing members and central counterparties (CCPs) with real-time views on location and positions in respect of margins and collateral.
Following CME Clearing Europe receiving regulatory approval of the new tri-party agreement for clearing members' business, those members will be able to manage collateral through BNY Mellon.
James Malgieri, executive vice-president, Global Collateral Services at BNY Mellon said: "Financial institutions are facing enormous challenges brought about by the EMIR and Dodd-Frank regulatory schemes and rapidly evolving regulatory structure in Europe and the US. Central clearing is a cornerstone of those changes and has seen attention increasingly focused on collateral needs.
"Collateral is a critical part of the risk mitigation framework of these new regulations. However, it brings its own challenges around selection, valuation and time-sensitive collateral delivery. BNY Mellon has for many years provided tri-party collateral management services for traditional repo transactions and has continued to evolve our model to meet changing requirements in the new CCP environment."
Andrew Lamb, Chief Executive Officer at CME Clearing Europe, said: "The requirements to clear OTC derivatives centrally is a key focus for both sell-side and buy-side firms. We feel that flexibility and certainty in collateral arrangements are necessary for all parties and that BNY Mellon's tri-party collateral management service offers those elements. CME Clearing Europe is pleased to have worked with BNY Mellon to introduce this new feature of our clearing arrangements."
Global Collateral Services offers a comprehensive suite of capabilities to help our clients address their collateral, liquidity and securities financing needs. As they face evolving global regulations and rapidly changing market requirements, clients can leverage BNY Mellon's products and services to better manage counterparty and market risk in their collateral transactions, engage in more investment opportunities to help maximize their investment returns and access new financing alternatives. BNY Mellon currently services $2 trillion in global collateral (including tri-party repo collateral worldwide) and approximately $100 billion in assets through its Liquidity DIRECT(SM) investment portal, and operates one of the industry's largest securities lending programs, with $3 trillion in lendable assets.
BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team. It has $27.9 trillion in assets under custody and administration and $1.4 trillion in assets under management, services $11.6 trillion in outstanding debt and processes global payments averaging $1.4 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com or follow us on Twitter @BNYMellon.
This press release is issued by The Bank of New York Mellon to members of the financial press and media. All information and figures source BNY Mellon unless otherwise stated as at September 30, 2012. The Bank of New York Mellon, London Branch, registered in England and Wales with FC005522 and BR000818. Branch office: One Canada Square, London E14 5AL. Authorised and regulated in the UK by the Financial Services Authority.