Innovative Service Reduces Risk and Increases Efficiency in Response to Regulatory Overhaul and Client Demand
NEW YORK, November 30, 2011 — BNY Mellon, the global leader in investment management and investment services, has launched MarginEdge(SM), an innovative global derivatives margin management service that allows financial institutions, clearing members and central counterparties (CCPs) to manage margin collateral efficiently while balancing trading costs and capital requirements associated with listed, cleared over-the-counter (OTC) and bilateral OTC derivatives.
Through MarginEdge, market participants use BNY Mellon's technology and expertise to reduce risk and increase efficiency in the complex derivatives collateral management process. In particular, MarginEdge helps segregate assets, supports transformation services, optimizes the use and allocation of collateral, consolidates margin management across collateral locations and providers, and simplifies connectivity among market participants for margin movements.
"Given our global capabilities in servicing clients' fixed income and equity collateral management needs, this strategic expansion into helping clients with their derivatives collateral management needs represents a natural evolution of our business model," said James Malgieri, CEO of BNY Mellon Broker-Dealer Services. "We have the operational infrastructure and expertise, as well as a deep understanding of the global financial markets, which position us to meet our clients' evolving needs anywhere in the world."
"Global regulatory reforms are driving profound changes in the derivatives markets, making operational efficiencies, risk reduction and increased transparency the critical components in any derivatives margin process," said John Vinci, global head of Product Management and Strategy for BNY Mellon Broker-Dealer Services. "MarginEdge helps market participants navigate the challenge of managing the costs and operational complexities linked to regulatory changes while meeting their required financial performance and goals."
BNY Mellon's Broker-Dealer Services is a leading provider of global and U.S. government securities clearance and collateral management solutions. It 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 17 of the 21 primary dealers. As a provider of tri-party collateral management services, it services over $1.8 trillion in daily tri-party balances worldwide.
BNY Mellon currently provides a suite of derivatives-related services through Derivatives360(SM), which comprises a broad array of offerings for issuers and investors around the execution and processing of derivatives. These include trading and execution, collateral management and other middle office outsourcing services, as well as custody, accounting and consolidated reporting. Other middle office services available through Derivatives360 on an outsourced basis include cash collateral reinvestment, OTC trade affirmation and confirmation, independent (third-party) valuation, counterparty and investment manager reconciliation and lifecycle event management.
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 $25.9 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 $1.6 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 or follow us on Twitter @BNYMellon.