Services will be provided via DM Edge, BNY Mellon’s derivatives margin management platform that allows customization of the margin and collateral process which incorporates the processing, reinvestment and valuation activities associated with posting and receiving collateral for OTC derivative transactions.
BNY Mellon said it will use DM Edge in conjunction with its Triparty collateral management and Money Funds platforms to support AP7’s equity OTC derivatives trading, assisting with raising cash as collateral, reinvesting cash collateral and calculating margin call amounts.
BNY Mellon EMEA business manager for broker dealer services Andrew Demko said BNY Mellon has created a solution for AP7 which enables it to maximize the use of its equity collateral.
"The pension fund has previously found that many market participants will not accept equity as collateral under ISDA agreements. Our solution enables long equity positions to be turned into cash at short notice for use as margin, facilitating the business and avoiding extra costs," Demko said.
