BNY Mellon expands collateral management services
12 April 2012 New York
Image: Shutterstock
BNY Mellon will allow futures commission merchants (FCMs) to post a wide range of collateral, including corporate bonds, for futures and cleared swaps margins at CME Clearing.
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.
"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.
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.
"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.
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