May 07, 2012

BNY Mellon Adds Automated Notification Enhancements to Margin DIRECT(SM) Liquidity Management Product

NEW YORK, May 7, 2012— BNY Mellon, the global leader in investment management and investment services, today announced a series of technological enhancements to the notification capabilities of its patent pending Margin DIRECT(SM) liquidity management product. Margin DIRECT combines BNY Mellon's custody and liquidity management capabilities for institutional investors looking for segregation of pledged collateral balances away from counterparties.

The new enhancements enable Margin DIRECT users to provide counterparties with electronic notification of certain critical events such as notices of exclusive control and termination events. These electronic notifications provide a timely and cost-effective alternative to written notices.

Clients can also use the new notification capability to upload and send documents as attachments to notifications. Both parties can assign sender credentials to specific individuals in their respective organizations. This provides an added layer of security in terms of restricting the ability to initiate default or bankruptcy notifications to specifically credentialed individuals.

"It's essential to anticipate client needs, and post Dodd-Frank, demand for segregation of collateral and margin services will continue to grow. Our patent pending Margin DIRECT product is an innovative technological solution that builds on our industry leading custodial and liquidity services and makes us uniquely qualified to meet these clients needs head on," said Jonathan Spirgel, Executive Vice President and Head of Liquidity Services for BNY Mellon.

BNY Mellon developed Margin DIRECT by combining two of its industry-leading services — custody and its Liquidity DIRECT(SM) liquidity management portal — into a single comprehensive solution. Margin DIRECT provides both safekeeping and liquidity management controls for posted margin balances away from an institutional investor's counterparties, with balances held in custody and directed via a user-friendly online portal for investment to an extensive array of client-selected liquidity investment products. Additional investment options in the form of individual securities are provided through BNY Mellon Capital Markets, LLC, a registered broker-dealer.

For institutional investors, the combination of collateral segregation and liquidity management available via Margin DIRECT enables users to significantly reduce the extent of their counterparty exposure while also creating the potential for income. Margin DIRECT has a host of service features, including the establishment of accounts for each counterparty; straight-through-processing for optimum transaction speed; and reporting for the institutional investor and various counterparties that reflects the institutional-strength reporting capabilities of BNY Mellon's custody and liquidity management platforms. Margin DIRECT offers real time reporting to help investors monitor liquidity, and ensure proper collateralization.

With offices in New York, Pittsburgh, Los Angeles, London and Hong Kong, BNY Mellon's Liquidity Services team provides global institutional clients with access to a wide range of money market funds through a proprietary electronic portal, provides custody for margin balances in counterparty transactions, and facilitates investments in individual money market securities through BNY Mellon's full service broker-dealer affiliate. The team's product offerings give users access to a wealth of account performance, investment, and analytics information, including data on yields, returns and credit ratings, country of risk and issuer exposure, associated with various cash management alternatives. iPad® and iPhone®-compatible versions of Liquidity DIRECT(SM) allows clients to invest, redeem and transfer cash via secure mobile devices.

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 $26.6 trillion in assets under custody and administration and $1.3 trillion in assets under management, services $11.9 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 or follow us on Twitter @BNYMellon.

Money market mutual funds are offered by The Bank of New York Mellon. The Bank of New York Mellon, DFIC Branch is communicating matters relating to offshore funds on behalf of The Bank of New York Mellon, which is registered in the UK by the Financial Services Authority.

The instruments available through Liquidity DIRECT are not suitable for all investors. Liquidity DIRECT does not provide individually tailored investment advice or offer tax, regulatory, accounting or legal advice. Not everyone is entitled to open an account. Investors should read all offering materials, including prospectuses, for any investment product and consider the economic risks, merits, investment objectives and expenses carefully before investing, as well as the legal, tax, regulatory and accounting consequences. Any discussion of risks herein should not be considered to be a disclosure of all risks or complete discussion of the risks which are mentioned.

Money market securities are not the equivalent of cash, they involve certain risks, including loss of principal, and are not deposits or obligations of, or guaranteed by, any bank and are not insured by the FDIC. Money market fund yields may fluctuate even though they seek to preserve the value of your investment at $1.00 per share. Accordingly, it is possible to lose money by investing in these securities. Yields fluctuate. Certain fund shares are offered only to pre-qualified investors in certain jurisdictions; secondary markets may not exist in all jurisdictions for any particular instrument or investment. Additional risks exist with foreign investments. This is not an offer or solicitation in any jurisdiction where such an offer would be illegal. US investors are not permitted to purchase non US registered funds; such securities are not registered with the US SEC, and are offered based on an exemption pursuant to Regulation S of the Securities Act of 1933, as amended.

Securities products and services other than money market securities are offered by BNY Mellon Capital Markets, LLC, a full service broker-dealer and a wholly owned non-bank subsidiary of The Bank of New York Mellon Corporation, and member of FINRA and SIPC. SIPC protects securities in customer accounts of its members up to $500,000 in securities (including $250,000 for claims for cash). Explanatory brochure available upon request or at SIPC does not protect against loss due to market fluctuation. SIPC protection is not the same as, and should not be confused with, FDIC insurance. The Bank of New York Mellon Corporation and its affiliates lend and provide other products and services to issuers and others, and provide and receive related fees and compensation.

Past performance of any investment is not indicative of nor a guarantee of future performance, and a loss of original capital may occur.

Securities Products: Not FDIC-Insured — Subject to Loss in Value — Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate.