Investment Operations Observations Blog Series, Part 2
The increased use of complex derivatives and growing demand for intraday data have only raised the stakes. But few asset managers have the technological capabilities to quickly pivot their operation in a time of crisis. The recent pandemic highlighted the value of such capability when market volatility drove unprecedented trading volumes, unprecedented derivative usage, investment in expanded markets, and almost immediate new account setup to meet the changing asset allocation of end clients.
BNY Mellon Investment Operations is supporting our clients by helping to reduce the operational risks of investment operations through an automated infrastructure, a global operation with the ability to pass the book, and deep and broad experience in asset management operations. The investments we’ve made in our infrastructure and our people are proving their value during these challenging times.
Today’s unprecedented needs have cast a light on legacy operations, tools and software. The value of outsourcing to a trusted provider has never been clearer. BNY Mellon’s new Investment Operations helps to efficiently consolidate data from various sources, can improve integration, and helps enhance data management and control capabilities.
The platform offers the flexibility to choose one or more modular services, including trade support, derivatives and collateral, bank loans, investment book of record (IBOR), and investment performance. Or clients can use our comprehensive suite of integrated capabilities to help achieve a front-to-back solution.
We offer asset managers the platform infrastructure and bedrock integration to help them rapidly close their technology deficits, bridge the gaps between trading and processing, and increase scale regardless of how regulatory or client demands evolve.
As industry pressures increase, our clients benefit from BNY Mellon’s:
Derivatives and Collateral Services provides accurate and timely processing of derivative contracts. We provide tools to help our clients comply with their regulatory requirements and market conventions regarding these complex products. Our margin management process aims to validate and efficiently post collateral to cover the exposures associated with exchange traded derivatives, OTC derivatives, repo/reverse repo transactions and Mortgage backed Securities (MBS). We focus on seeing that collateral positions agree to counterparties and are segregated.
BNY Mellon’s technologies leverage commonly used market utilities to deliver the full lifecycle of services. Our integrated derivatives and collateral platform offers:
In recent weeks, margin movements have increased fivefold and are normalizing at twice historical levels. Despite the challenges, we have helped our clients validate and meet margin calls as the value of the deliverable securities fluctuated in response to market conditions.
As the burden on asset managers grow, so has the need to expand the team. BNY Mellon’s outsourced solutions can help accelerate your expansion into new products, asset types, trading strategies, and markets.