CME Clearing opts for BNY Mellon services
13 December 2012 London
Image: Shutterstock
CME Clearing Europe has selected BNY Mellon to provide triparty collateral management services supporting the buy side, sell side and clearing houses.
Services will be provided through MarginEdge, which is BNY Mellon’s derivatives margin management service for listed OTC and bilateral OTC derivatives.
MarginEdge provides clients, clearing members and central counterparties (CCP) with real-time views on location and positions in respect of margins and collateral.
James Malgieri, executive vice-president of Global Collateral Services at BNY Mellon, said: "Financial institutions are facing enormous challenges brought about by the EMIR and Dodd-Frank regulatory schemes and rapidly evolving regulatory structure in Europe and the US. Central clearing is a cornerstone of those changes and has seen attention increasingly focused on collateral needs."
"Collateral is a critical part of the risk mitigation framework of these new regulations. However, it brings its own challenges around selection, valuation and time-sensitive collateral delivery. BNY Mellon has for many years provided triparty collateral management services for traditional repo transactions and has continued to evolve our model to meet changing requirements in the new CCP environment."
Andrew Lamb, CEO at CME Clearing Europe, said: "The requirements to clear OTC derivatives centrally is a key focus for both sell-side and buy-side firms. We feel that flexibility and certainty in collateral arrangements are necessary for all parties and that BNY Mellon's triparty collateral management service offers those elements. CME Clearing Europe is pleased to have worked with BNY Mellon to introduce this new feature of our clearing arrangements."
Services will be provided through MarginEdge, which is BNY Mellon’s derivatives margin management service for listed OTC and bilateral OTC derivatives.
MarginEdge provides clients, clearing members and central counterparties (CCP) with real-time views on location and positions in respect of margins and collateral.
James Malgieri, executive vice-president of Global Collateral Services at BNY Mellon, said: "Financial institutions are facing enormous challenges brought about by the EMIR and Dodd-Frank regulatory schemes and rapidly evolving regulatory structure in Europe and the US. Central clearing is a cornerstone of those changes and has seen attention increasingly focused on collateral needs."
"Collateral is a critical part of the risk mitigation framework of these new regulations. However, it brings its own challenges around selection, valuation and time-sensitive collateral delivery. BNY Mellon has for many years provided triparty collateral management services for traditional repo transactions and has continued to evolve our model to meet changing requirements in the new CCP environment."
Andrew Lamb, CEO at CME Clearing Europe, said: "The requirements to clear OTC derivatives centrally is a key focus for both sell-side and buy-side firms. We feel that flexibility and certainty in collateral arrangements are necessary for all parties and that BNY Mellon's triparty collateral management service offers those elements. CME Clearing Europe is pleased to have worked with BNY Mellon to introduce this new feature of our clearing arrangements."
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