Enhancements Designed to Fully Support Tri-Party Infrastructure Reform Task Force Recommendations for "Practical Elimination" of Intraday Credit
NEW YORK, April 27, 2011 — BNY Mellon, the global leader in investment management and investment servicing, has been introducing a series of new services that will improve the infrastructure, operations and systems supporting its tri-party repo clients.
BNY Mellon said its new capabilities are designed to support the Tri-Party Infrastructure Reform Task Force Recommendations, including the recommendation that enhancements be made to achieve the "practical elimination" of intraday credit provided by the company to its clients.
BNY Mellon has already introduced an auto cash substitution capability for both Fed and DTCC securities that provides dealers with easy access to the securities they need for daily trading. With Auto Collateral Request(SM) and Auto Collateral Exchange(SM) – two new features on the company's sophisticated technology platform – BNY Mellon retrieves only those securities required for the settlement of trades. Since being introduced, these processes have already reduced intraday credit exposures by more than 10%.
"We are aggressively working to implement all of our new capabilities while continuing to fully support our clients' operational, technology and funding needs," said James Malgieri, CEO of BNY Mellon Broker-Dealer Services. "These actions are designed to fully satisfy the Task Force's objectives and we firmly believe they will lead to greater transparency and confidence in the tri-party market for all market participants, including dealers, investors and regulators."
BNY Mellon Broker-Dealer Services is the leading provider of tri-party collateral management services, servicing more than $1.8 trillion in tri-party balances worldwide. It is a leader in both global securities and US Government securities clearance. BNY Mellon Broker-Dealer Services clears and settles equity and fixed income transactions in over 100 markets and handles most of the transactions cleared through the Federal Reserve Bank of New York, for 16 of the 20 primary dealers.
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 $25.5 trillion in assets under custody and administration and $1.2 trillion in assets under management, services $11.9 trillion in outstanding debt and processes global payments averaging $1.7 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available at www.bnymellon.com.