BNY Mellon and CIBC Mellon create lending giant
22 October 2013 New York and Toronto
Image: Shutterstock
BNY Mellon and CIBC Mellon have merged their securities lending desks in a move that will make BNY Mellon鈥檚 securities finance business one of the largest providers of lending services in the world.
The merged group now has trading offices in New York, Pittsburgh, Toronto, London and Hong Kong. Eight traders previously under CIBC Mellon will now work for BNY Mellon.
BNY Mellon's global markets expertise will be available to CIBC Mellon clients, providing new opportunities for incremental revenue in markets around the world.
CIBC Mellon's niche expertise in the Canadian market will be available to BNY Mellon clients, providing the potential for improved returns on Canadian securities.
Rob Ferguson, senior vice president of capital markets at CIBC Mellon, said that the alignment of the trading desk teams represented the culmination of years of working together.
CIBC Mellon is BNY Mellon鈥檚 Canadian joint venture with Canadian Imperial Bank of Commerce. The joint venture was established in 1996.
In an interview, Ferguson explained the thinking behind the combination of the CIBC Mellon and BNY Mellon securities lending desks.
He said: 鈥淛ames Slater and I began talking a few years ago. We discussed the challenges and the market, and realised we had a unique opportunity here in that our programme, which has been very successful since the beginning, had one desk, in Toronto. We had people who would come in early in the day to cover the European time zone, but there was some limitation around servicing the world out of just Toronto.鈥�
鈥淛ames鈥檚 group is significantly bigger, and has desks in Hong Kong, London, New York and Pittsburgh, but BNY Mellon doesn鈥檛 have a desk in Toronto. Canada is a very large and important market in securities lending and James saw an opportunity for BNY Mellon clients to be better served in the Canadian market.鈥�
James Slater, executive vice president and global head of securities finance at BNY Mellon, added in the interview: "This was our objective, to really pull the programmes together. This is about building what is a very strong partnership and terrific working relationship, in which CIBC Mellon and BNY Mellon have been working collaboratively around the securities lending/finance business.鈥�
鈥淭his business is requiring more investment as the need for investors grows. There is sophistication and complexity in markets. It makes a lot of sense to combine our resources.鈥�
Part of BNY Mellon's global collateral services division, the securities finance business encompasses more than $2.5 trillion in lendable assets and outstanding loan balances of approximately $250 billion.
CIBC Mellon's programme represents more than 120 clients with approximately CAD$500 billion in lendable assets and CAD$60 billion on loan, making it the largest securities lending programme in Canada.
The merged group now has trading offices in New York, Pittsburgh, Toronto, London and Hong Kong. Eight traders previously under CIBC Mellon will now work for BNY Mellon.
BNY Mellon's global markets expertise will be available to CIBC Mellon clients, providing new opportunities for incremental revenue in markets around the world.
CIBC Mellon's niche expertise in the Canadian market will be available to BNY Mellon clients, providing the potential for improved returns on Canadian securities.
Rob Ferguson, senior vice president of capital markets at CIBC Mellon, said that the alignment of the trading desk teams represented the culmination of years of working together.
CIBC Mellon is BNY Mellon鈥檚 Canadian joint venture with Canadian Imperial Bank of Commerce. The joint venture was established in 1996.
In an interview, Ferguson explained the thinking behind the combination of the CIBC Mellon and BNY Mellon securities lending desks.
He said: 鈥淛ames Slater and I began talking a few years ago. We discussed the challenges and the market, and realised we had a unique opportunity here in that our programme, which has been very successful since the beginning, had one desk, in Toronto. We had people who would come in early in the day to cover the European time zone, but there was some limitation around servicing the world out of just Toronto.鈥�
鈥淛ames鈥檚 group is significantly bigger, and has desks in Hong Kong, London, New York and Pittsburgh, but BNY Mellon doesn鈥檛 have a desk in Toronto. Canada is a very large and important market in securities lending and James saw an opportunity for BNY Mellon clients to be better served in the Canadian market.鈥�
James Slater, executive vice president and global head of securities finance at BNY Mellon, added in the interview: "This was our objective, to really pull the programmes together. This is about building what is a very strong partnership and terrific working relationship, in which CIBC Mellon and BNY Mellon have been working collaboratively around the securities lending/finance business.鈥�
鈥淭his business is requiring more investment as the need for investors grows. There is sophistication and complexity in markets. It makes a lot of sense to combine our resources.鈥�
Part of BNY Mellon's global collateral services division, the securities finance business encompasses more than $2.5 trillion in lendable assets and outstanding loan balances of approximately $250 billion.
CIBC Mellon's programme represents more than 120 clients with approximately CAD$500 billion in lendable assets and CAD$60 billion on loan, making it the largest securities lending programme in Canada.
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