Evolution in the Collateral Management Space

Reprinted with the permission of Asset International, Inc.

John Vinci, head of Global Product Management for BNY Mellon Broker-Dealer Services, discusses innovative solutions in collateral financing that have evolved in response to the changing trends and needs of the global financial marketplace.

Author:   John Vinci
Business:  Collateral Services
Publication date:   April 2012

VIDEO: Collateral Front and Center - Regulation Triggers Renewed Focus on Collateral

BNY Mellon's Kurt Woetzel, Global Head of Operations, Technology and Collateral Services, and Nadine Chakar, Executive Vice President, Global Collateral Services, discuss the impact of Dodd-Frank and the European Markets Infrastructure Regulation on collateral management. In addition to expecting increased demand for high-quality collateral, Woetzel and Chakar believe both sell- and buy-side firms will be under pressure to optimize their collateral.

Authors:   Kurt Woetzel, Nadine Chakar
Business:   Collateral Services
Publication date:   November 2012

BNY Mellon Regulatory News Spotlight: CFTC & SEC Begin Finalizing OTC Reform -- Final Definition of Swaps Approved as Part of Dodd-Frank

As a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), the U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) are writing rules to regulate the swaps marketplace, and recently approved the final product definitions for swaps and security-based swaps. These final rules will further define the swap regulatory oversight environment as co-regulated by the CFTC and the SEC.

Business:  Collateral Services
Publication date:   July 2012

Securities Lending -- Impact of Regulatory Initiatives on Borrower Default Indemnification

Indemnified agency securities lending still serves a vital role by generating income for beneficial owners and supporting financial market liquidity. Nevertheless, although the outcome of many of the regulatory regime changes discussed in this article remains uncertain, the overarching theme to the proposals is a tightening of restrictions affecting agent banks' indemnified securities lending programs.

Business:  Collateral Services
Publication date:   September 2012

To Clear or Not to Clear ... Collateral is the Question

The fundamental post-crisis regulatory reform of the OTC derivatives markets will have a profound effect on all users of OTC derivatives. This paper examines the impact and looks at what avenues are open to institutional investors who - with the advent of the Dodd-Frank Act, EMIR and other equivalent rules - face substantial business and operational challenges around executing, clearing, collateralising and reporting OTC derivatives trades.

In collaboration with:   Rule Financial
Business:   Collateral Services
Publication date:   December 2012

Regulatory Change in Securities Lending: An Update for Clients

An array of proposed legislation and recommendations including Basel III, Dodd-Frank and European Commission rules on short selling will ultimately provide new mandates for securities lending market participants at all stages of the transaction. In the meanwhile however, beneficial asset holders and securities lending agents are working to assess the new environment as regulatory concepts become formalized and specific rules are adopted.

In collaboration with:   Finadium LLC
Business:  Collateral Services
Publication date:   September 2011

Resetting the Roadmap: Managing in a New Securities Lending Environment for Beneficial Asset Holders

The business of securities lending was turned on its head by the events of 2008. Going forward, new dynamics are taking shape for inventory and collateral management and in defining the role of the agent lender.

In collaboration with:   Finadium LLC
Business:   Collateral Services
Publication date:   August 2009

Securities Lending, Crisis Management and the Orderly Liquidation Authority

In the aftermath of the financial crisis, regulators are working to prevent another disaster similar to Bear Stearns or Lehman Brothers. In the U.S. and Europe, one answer has been to begin to create orderly unwind processes that allow both regulators and the markets to understand what will happen in the event a major institution is near default. International organizations are looking at cross-border resolution capabilities given the interconnectedness of the global financial system. This report evaluates recent government efforts and their potential impacts on beneficial owners in the securities lending market.

In collaboration with:   Finadium LLC
Business:  Collateral Services
Publication date:   January 2012