BNY Mellon said its 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.
BNY Mellon 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(SM) and Auto Collateral Exchange(SM) – two new features on the company’s 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%, claimed the company.
BNY Mellon Broker-Dealer Services CEO James Malgieri said they are aggressively working to implement all of their new capabilities while continuing to fully support our clients’ operational, technology and funding needs.
"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," Malgieri said.
BNY Mellon Broker-Dealer Services offers tri-party collateral management services, servicing more than $1.8 trillion in tri-party balances worldwide.
