November 20, 2014

U.S. Tri-Party Repo Indices and Related Futures Products from BNY Mellon and CME Group to Provide Investors with Powerful New Interest Rate Risk Management Tools

Collaboration combines BNY Mellon's leadership in U.S.Tri-Party Repo services with CME Group's ability to provide access to one of the world’s largest interest rates futures open interest pools


CHICAGO AND NEW YORK, November 20, 2014 — BNY Mellon, a global leader in investment management and investment services, and CME Group, one of the world's leading and most diverse derivatives marketplaces, today announced a collaboration that will provide investors with important new interest rate hedging tools that leverage BNY Mellon's strengths as a U.S. Tri-Party Repo agent and custodian and CME Group's leadership as a derivatives marketplace.

BNY Mellon's role in the collaboration will be to prepare and provide daily U.S. Tri-Party Repo Indices that reflect overnight interest rates on Tri-Party Repo transactions collateralized by U.S. Treasuries, Agency Mortgage Backed Securities, and U.S. Agency debt.  CME Group futures related to these indices will allow investors to hedge risk on short-term collateralized loans and other nearly risk-free interest rate exposures.  The futures products are scheduled to launch in 2015, pending regulatory review, and will be listed by and subject to the rules of the Chicago Board of Trade (CBOT).

Based on  the approximately $400 billion1 per day  of overnight repo transactions in the specific index asset classes processed daily on BNY Mellon's Tri-Party Repo platform, the new BNY Mellon U.S. Tri-Party Repo Indices will provide investors with an entirely new, highly transparent transactional-based benchmark.  Currently representing approximately 85 percent of the U.S. Tri-Party Repo market2, transactions on the BNY Mellon platform reflect the investment activities of a diverse array of market participants.

"These new Tri-Party Repo Indices reflect our commitment to leveraging BNY Mellon's thought leadership and technological strengths to increase the levels of transparency and efficiency in the financial services industry," said John Vinci, Managing Director and Head of BNY Mellon’s Broker-Dealer Services Product Management and Strategy.  "This collaboration promises to provide investors with great new tools to help hedge interest rate exposure – we'll be giving investors access in a world-class derivatives marketplace to products that reflect our unmatched ability to track and report on activity in the Tri-Party Repo space."

“We are pleased to partner with BNY Mellon to deliver futures contracts that enable the marketplace to access a nearly risk free repo interest rate benchmark, and to provide our customers with more choices to manage their interest rate risk management needs,” said Sean Tully, Senior Managing Director of Financials and OTC at CME Group. “CME Group is a natural home for futures related to BNY Mellon’s Tri-Party Repo Indices because of our unique ability to offer portfolio margining with one of the world’s largest interest rates futures open interest pools, including Eurodollars, Fed Funds, and U.S. Treasury Note and Bond futures.”

1. Average daily volume as of August 2014.
2. As of Sept. 30, 2014, BNY Mellon services approximately $1.4 trillion of the $1.6 trillion Tri-Party Repo market in the U.S.

About CME Group

As the world’s leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform, its trading facilities in New York and Chicago, and through its London-based CME Europe derivatives exchange.  CME Group also operates one of the world’s leading central counterparty clearing providers through CME Clearing and CME Clearing Europe, which offer clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions.  These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.

CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners. Further information about CME Group (NASDAQ: CME) and its products can be found at www.cmegroup.com.

About BNY Mellon

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of Sept. 30, 2014, BNY Mellon had $28.3 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. 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.

Contacts:

CME Group
Alex Gorbokon
+1 312 930 3193
alex.gorbokon@cmegroup.com

BNY Mellon
Ron Sommer
+1 412 236 0082
ron.sommer@bnymellon.com