Pirum links up with BNY Mellon to improve trade efficiency
05 April 2013 London
Image: Shutterstock
BNY Mellon’s global collateral services business has upgraded its AccessEdge collateral management portal with a newly-established link to Pirum’s new triparty required value (RQV) processing service.
The bank’s AccessEdge portal connects dealers with investors that participate in repo, securities lending, OTC, central counterparty (CCP) and other collateralised transactions, enabling real-time collateral transfers in a secure and efficient environment.
The link with Pirum’s triparty RQV solution, which simplifies collateralisation and expedites securities transfers between dealers and investors, will improve intraday visibility of proposed trades, allow for simpler and timelier trade resolution management, and create a single unified process for the agreement and communication of trades.
With the link, BNY Mellon clients will be able to automatically calculate, reconcile, agree and submit their RQVs across all counterparties, whether they are Pirum participants or not.
Staffan Ahlner, managing director in the global collateral services business at BNY Mellon, said: “In today's environment, we need to take a comprehensive view on all aspects of a financial transaction. Post-trade risks and operational risks are important factors when processing trades. Complexity is often added with the need to segregate collateral at a final beneficial ownership level on a timely basis.”
“BNY Mellon is focusing on improving the market efficiencies in this processing cycle. The new link is a step in the overall plan to enhance the connectivity of BNY Mellon's triparty system to lenders and borrowers.”
Jonathan Lombardo, head of global sales at Pirum, added: “Daily RQVs for securities lending portfolios will be calculated by Pirum using a client’s own data and rules. The new service improves the intraday visibility of proposed RQVs, facilitating much simpler and timelier dispute resolution amongst market participants.”
“It also provides a single unified process for operations teams to use when agreeing and communicating RQVs. Pirum receives the latest RQVs from triparty agents for inclusion in the RQV summary screen. Triparty agents’ collateral allocation reports facilitate the display of the latest collateralised values and provide a collateral position reconciliation against the participants’ own records.”
The bank’s AccessEdge portal connects dealers with investors that participate in repo, securities lending, OTC, central counterparty (CCP) and other collateralised transactions, enabling real-time collateral transfers in a secure and efficient environment.
The link with Pirum’s triparty RQV solution, which simplifies collateralisation and expedites securities transfers between dealers and investors, will improve intraday visibility of proposed trades, allow for simpler and timelier trade resolution management, and create a single unified process for the agreement and communication of trades.
With the link, BNY Mellon clients will be able to automatically calculate, reconcile, agree and submit their RQVs across all counterparties, whether they are Pirum participants or not.
Staffan Ahlner, managing director in the global collateral services business at BNY Mellon, said: “In today's environment, we need to take a comprehensive view on all aspects of a financial transaction. Post-trade risks and operational risks are important factors when processing trades. Complexity is often added with the need to segregate collateral at a final beneficial ownership level on a timely basis.”
“BNY Mellon is focusing on improving the market efficiencies in this processing cycle. The new link is a step in the overall plan to enhance the connectivity of BNY Mellon's triparty system to lenders and borrowers.”
Jonathan Lombardo, head of global sales at Pirum, added: “Daily RQVs for securities lending portfolios will be calculated by Pirum using a client’s own data and rules. The new service improves the intraday visibility of proposed RQVs, facilitating much simpler and timelier dispute resolution amongst market participants.”
“It also provides a single unified process for operations teams to use when agreeing and communicating RQVs. Pirum receives the latest RQVs from triparty agents for inclusion in the RQV summary screen. Triparty agents’ collateral allocation reports facilitate the display of the latest collateralised values and provide a collateral position reconciliation against the participants’ own records.”
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