BNY Mellon introduces tri-party repo services
28 April 2011 New York
Image: Shutterstock
BNY Mellon has introduced a series of new services that will improve the infrastructure, operations and systems supporting its tri-party repo clients.
The 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.
The bank 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 and Auto Collateral Exchange – 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."
The 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.
The bank 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 and Auto Collateral Exchange – 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."
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