Securities Finance

Tools to Source Liquidity, Borrow Securities and Lend Securities

Regulation and rapidly changing global financial markets can present challenges and opportunities as you implement investment strategies and try to comply with capital requirements.

 

Work with BNY Mellon as you face these challenges and opportunities. Together, we can build a flexible and efficient financing solution.

BNY Mellon Securities Finance

GLOBAL PERSPECTIVE

  • Exceptional insight into evolving needs of a large portion of the world's capital markets.
  • BNY Mellon continues to rank among financial firms with the highest credit ratings globally.1
  • Leverage our global scale to help meet your trading, financing and collateral needs.

INNOVATIVE CAPABILITIES

  • Ability to accept expanding forms of non-cash collateral.
  • Focus on intrinsic return to help optimize return on assets.
  • Finance your investment portfolios and convert idle assets to support your investment strategies.

INTERCONNECTIVITY

  • Unique market position as major clearing bank & collateral management service provider.
  • Leadership participation within trade and industry organizations.
  • Benefit from our industry relationships as you look to drive results.

COMPREHENSIVE SERVICES

  • Robust selection of flexible product options including securities lending, borrowing securities and secured loans.
  • Tools to help you to collateralize transactions, enhance returns and facilitate liquidity.
  • Together, we can build a flexible and efficient financing solution.

TECHNOLOGY

  • Next-generation technology combined with a global operating model and scalable infrastructure.
  • Non-cash and cash collateral investment flexibility, proprietary auction technology, and detailed analyses.
  • Empowers you to make more informed investment decisions.

Capabilities

As you look to construct a securities lending program that aligns with your goals and objectives, benefit from BNY Mellon’s vast experience and comprehensive suite of services.

 

We customize a lending profile for you, including a tailored strategy based on your requirements, stated objectives and risk tolerance.

 

Cash Collateral Investment

 

Cash collateral investment is based upon specific client guidelines that may include approved investments, credit quality, concentration and duration factors.

 

Investment Strategy and Options

 

Choose from a range of flexible cash collateral management options to support your investment guidelines. Our options include:

  • Separately managed accounts
  • Externally managed funds
  • Client managed cash

 

Client Managed Cash

 

You can manage your own cash collateral (subject to credit approval by BNY Mellon) to support your business priorities. This allows for an alternative source of liquidity for your daily cash needs.

 

Depth of Resources

  • Comprehensive risk management and credit research
  • Intrinsic lending driven
  • Ability to lend securities from a wide variety of local markets for increased utilization
  • Choice of more than 100 borrowers that meet BNY Mellon’s credit approval standards
  • Internally managed
  • Dedicated personnel
 

Innovative Technology

 

Leveraging our technology we can build:

  • Customized parameters (e.g., by security manager asset class, etc.)
  • Tailored program structures
  • High levels of automation

 

Trading Platform

 

BNY Mellon’s customizable front-end trading application is utilized globally to provide more effective information gathering. By aggregating data from multiple sources into a single application, traders can more quickly recognize changes to relative loan rates which may lead to additional opportunities.

 

Customized Auction Tool: i-BIDSM

 

This Internet-based securities auction tool allows traders to structure multi-dimensional auctions, ranging from full or partial portfolio exclusives down to single market or multi-market baskets. The flexibility of the platform allows for multiple collateral types and currencies helping to ensure that we are able to understand demand and the effects of collateral on pricing.

 

Third Party Securities Lending

 

BNY Mellon also offers non-custodial third party lending options with a full range of services if you wish to maintain a custody relationship with another institution, yet are looking to enhance your lending performance.

Finance your short strategies by borrowing securities using cash and securities as collateral.

 

(Not available in all markets)

 

Improved Risk Mitigation

 

BNY Mellon continues to rank among financial firms with the highest credit ratings globally and remains Moody’s highest-rated financial firm in the U.S. at the bank level.2 The company's Tier 1 ratio is among the highest of all major U.S. banks and contains a large percentage of common equity.

  • Highly rated counterparty helps diversify traditional risk

 

Access to Lendable Securities

 

You can leverage BNY Mellon’s securities financing experience. We have been providing securities lending services since 1977 and have the industry’s largest custodian agent lending program.

  • Additional source of lendable assets
  • Access to the world’s largest supply of lendable securities3
  • Diversification of financing counterparties

 

Manage Borrowing and Financing Costs

 

You can finance your short strategies by borrowing securities and using cash and securities held at BNY Mellon as collateral.

 

  • Lending longs
  • Pledging of equity collateral
  • Potential opportunities for self-financing and self-borrow transactions (subject to approval and certain restrictions)

 

Introducing Sponsored Cleared Repo

 

Consolidating repo activities through industry utilities such as central counterparties (CCPs) offers a highly efficient means to counter the increased capital burden created by the regulations. 

Obtain cash for collateral, liquidity or leverage strategies through our secured loan program.

 

Global Scope

 

Our secured loan program covers the U.S., EMEA and APAC with flexible collateral options.

  • Global in scope, regional in design and local in delivery
  • Staff located in the Americas, APAC and EMEA
  • BNY Mellon is well positioned to provide the knowledge, expertise and support you are seeking in today’s evolving global marketplace

 

Expanded Financing Options

 

Secured loans can help you obtain cash for collateral, liquidity or leverage strategies.

  • Ability to use long assets and capital more efficiently
  • Durable term funding
  • BNY Mellon provides you with tools to help you source liquidity

 

Financial Strength

 

BNY Mellon’s status as a strong, trusted counterparty reflects the strength of our balance sheet, our overall liquidity and capital positions, and our reputation as a sound and safe institution. BNY Mellon continues to rank among financial firms with the highest credit ratings globally and remains Moody’s highest-rated financial firm in the U.S. at the bank level.4

  • Leverage our financial stability to help meet your securities financing needs
  • Benefit from our commitment as you look to drive results and achieve your business objectives
  • BNY Mellon serves as a strong and dependable ally that can help you sustain your business through the evolving changes in the financial marketplace

Our Insights

JUNE 2019

Sponsored Repos are Surging

Banks are sponsoring repos into clearing at a rapid clip, providing critical new capacity to the market.


OCTOBER 2019

ETFs to Join the Collateral Party?

Explore how ETFs could become the next big thing in collateral circles.


Ready to talk about what's next?

Securities Finance Disclaimer

 

1,2,4View credit ratings for The Bank of New York Mellon Corporation and its principal subsidiaries.

4Markit Securities Finance for the period from 1/1/2016 through 12/31/2016 measured against other custodian agent lenders.