The Bank of New York Mellon has expanded DM Edge, the company's derivatives collateral management service, beyond derivatives to cover a wide range of margin-related activities, including repo and securities lending.
DM Edge facilitates for clients the administrative, processing, reinvestment and valuation activities associated with posting and receiving collateral in a tri-party structure for over-the-counter derivatives trades.
The new services allow a wide range of clients that trade bilaterally to outsource margin management to The Bank of New York Mellon, the company says. The Bank of New York Mellon will handle a variety of operational and administrative activities, such as monitoring margin parameters and calculating margin status, to assist clients in reusing and reinvesting their collateral pools.
"We have developed state-of-the-art Web interfaces for easy access to intra-day calculations, a wide selection of reports and real-time data margin position updates, all of which help our clients to mitigate credit risk and maximize the use of their collateral," says Art Certosimo, executive vice president and head of Broker-Dealer and Alternative Investment Services. "As market dynamics change, institutional investors will need to rely on more sophisticated services to reduce risk as well as enhance performance of their assets, and we will continue to be the company that meets those needs."
SOURCE: Bank of New York Mellon