BNY Mellon rolls out Bloomberg collateral management link
BNY Mellon has added a link to Bloomberg to its AccessEdge investment management service, which the bank says will help clients to better manage their collateral.
The idea driving the link is that by connecting BNY Mellon to Bloomberg Professional, users will be able to consolidate multiple deal confirmations into one, making post-trade more efficient. The service covers repo, securities lending, OTC, CCP and collateralised transactions and is only available outside the US.
Customers of the bank can now submit automated deal matching instructions for any of their trades on AccessEdge, meaning that they can input, monitor and view trade matching statuses in real time online. Deals can be matched, unmatched or mismatched.
“The big attraction of this connectivity for our clients is to reduce post trade risks and improve the post trade efficiency,” said Staffan Ahlner, managing director, global collateral services at BNY Mellon. “It will help them grow their business more efficiently in all securities finance markets, while minimising their investment in back-office infrastructure and technology. We will continue to invest in technology and infrastructure to offer our clients secure and innovative ways of managing the growing collateral universe.”
Several collateral management solutions have been rolled out over the last 12 months, including offerings from Citi, alliances between securities depositories in Germany, Spain, Brazil, South Africa and Australia, and a new collateral service between Clearstream and Belfius. Some of these were intended partly as a solution to the much-talked about ‘collateral shortfall’ that is expected by some industry observers as a result of global financial reforms, including Basel III. There has also been controversy over the quality of assets that will be considered ‘high-quality’ collateral.