FCMs to Use MarginEdge(SM), Company's Derivatives Margin Management Service
NEW YORK, April 11, 2012 — BNY Mellon, the global leader in investment management and investment services, will begin allowing futures commission merchants (FCMs) to post a wide range of collateral, including corporate bonds, for futures and cleared swaps margins at CME Clearing. FCMs can post the collateral via the CME IEF4 program using MarginEdge(SM), BNY Mellon's global derivatives margin management service.
CME Clearing now accepts corporate bonds along with cash, government bonds, agency and mortgage backed bonds, money market funds, letters-of-credit, physical gold, equities, and bank deposits to collateralize transactions in the futures and the over-the-counter derivatives market. Through MarginEdge, market participants use BNY Mellon's technology and expertise to post margins at CME Clearing while reducing risks and increasing efficiencies in the complex derivatives margin management process.
"As demand for non-traditional collateral grows at clearinghouses in the wake of regulatory reforms, it is critical that market participants have access to superior operational solutions and support to post and track their collateral," said James Malgieri, head of Global Collateral Management and Securities Clearance Services at BNY Mellon Broker-Dealer Services. "BNY Mellon has for many years provided tri-party collateral management services for traditional repo transactions and has expanded the model to meet the requirements of the centralized clearing environment."
"CME Clearing's expanded collateral program will help create efficiencies for our customers who are migrating their OTC interest rate swaps into CME Clearing," said CME Clearing President Kim Taylor. "By extending the range of collateral accepted, CME Clearing reduces the costs of clearing and creates further efficiencies for our customers and clearing members."
BNY Mellon is one of the largest providers of outsourced derivatives collateral management services globally. It is a leading provider of tri-party collateral management services, servicing more than $1.8 trillion in tri-party balances worldwide.
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 $25.8 trillion in assets under custody and administration and $1.26 trillion in assets under management, services $11.8 trillion in outstanding debt and processes global payments averaging $1.5 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com or follow us on Twitter @BNYMellon.