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

In Conversation

Reprinted with the permission of Algorithmics, an IBM company

Scott Linden, Managing Director and Global Product Manager, Derivatives Collateral Management Services at BNY Mellon, shares his thoughts on Dodd-Frank, the march towards central clearing, and life at the world's largest custodian.

Author:   Scott Linden
Business:  Collateral Services
Publication date:   November 2011

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

A Critical Moment for Collateral Management

Reprinted with the permission of Black Knight Media Ltd.

As the financial crisis enters a new and uncertain phase, collateral management has taken on a new and profound significance. For an insider's view on the issue, Securities Lending Times turned to Paul Harland, Managing Director with BNY Mellon Broker-Dealer Services, who characterises the current environment as one of evolution, revolution and regulation.

Author:   Paul Harland
Business:  Collateral Services
Publication date:   September 2011

A Clear Case for Change

Reprinted with the permission of Financial-i

The move to central clearing for OTC derivatives is causing consternation, especially amongst fund managers, and many foresee changes in investor behaviour to avoid charges when the new regulations come into force. This article was first published in Financial-i Q2 2011. www.financial-i.com.

Authors:   Jonathan Bowler, Christopher Coleman
Business:  Collateral Services
Publication date:   June 2011

Collateral Management for German Funds: Innovative Solutions for Stock-Loan Transactions

Reprinted with the permission of Euromoney Institutional Investor PLC

As the German investment industry liberalises to the form of the international model, German institutional and retail funds are adopting innovative techniques to mitigate risks in capital markets around the world.

Authors:   Thomas Brand, Mark Higgins
Business:  Collateral Services
Publication date:   June 2011

Tri-Party Roundtable: Tri-Party Tribulations

Reprinted with the permission of Euromoney Institutional Investor PLC

An expert panel discusses the effect of impending regulations, diverging reporting requirements and innovating to meet clients' needs.

Author:   Adam Goddard
Business:  Collateral Services
Publication date:   June 2011

ETFs Reduce Risk Through Collateral Management

Reprinted with the permission of Incisive Media Services Limited

Exchange Traded Fund (ETF) providers are beginning to recognize the benefit of third-party collateral management as an effective tool to reduce risk. While swap-based or synthetic ETFs are arguably one of the most successful recent innovations in the marketplace, concerns about transparency and credit risk have driven ETF providers to look to multi-asset class collateral management as a way to protect against potential loss.

Author:   Paul Harland
Business:  Collateral Services
Publication date:   March 2011

Regulatory Reform: The Shape of Things To Come

Reprinted with the permission of Incisive Media Services Limited

Transparency, reporting and ongoing regulatory reform are key issues in the derivatives marketplace. While many are aware of the Dodd-Frank Act, the full impact of the law remains unclear. Patrick Tadie, Global Head of Derivatives360, discusses the major challenges facing financial institutions in this new regulatory environment and outlines ways to prepare for these challenges.

Author:   Patrick Tadie
Business:  Collateral Services
Publication date:   February 2011

Mitigating Collateral Damage: Current Themes in Managing and Mitigating Counterparty Credit Risk for OTC Derivatives

The financial crisis re-emphasized the importance of counterparty credit risk, and the subsequent industry-led program of reform has addressed many of the shortcomings of the OTC market. BNY Mellon and independent consulting firm InteDelta investigated current counterparty credit risk management policies and processes across a representative sample of asset management, insurance and pension fund institutions. Findings from this research reveal an evolving OTC derivatives market that is wary of risk, open to change, and surprisingly robust.

Authors:   Jonathan Bowler, Mark Higgins, Stephen Ingle, David Brown, Michael Schroeder, Chris Coleman, Patrick Tadie, John Templeton
In collaboration with:   InteDelta
Business:  Collateral Services
Publication date:   January 2011