BNY and CME Partner to Facilitate Corporate Bonds for Margins Posting

clearing and settlement

Investment services provider BNY Mellon announced it will allow futures commission merchants (FCMs) to post corporate bonds and a range of other non-traditional collateral for futures and cleared swaps margins at CME Clearing, using BNY's MarginEdge derivatives margin management service.

MarginEdge, BNY says, will allow market participants posting margins to reduce risk and increase efficiencies in the other complex process of margin management, particularly with potential mandated clearing of certain swaps forthcoming from regulators.

CME Clearing accepts a variety of collateral types for futures and over-the-counter (OTC) derivatives transactions, ranging from cash and government bonds to money market funds and physical gold. Corporate bonds will represent the newest addition.

"As demand for non-traditional collateral grows at clearinghouses in the wake of regulatory reforms, it is critical that market participants have access to superior operational solutions and support to post and track their collateral. BNY Mellon has for many years provided tri-party collateral management services for traditional repo transactions and has expanded the model to meet the requirements of the centralized clearing environment," says James Malgieri, head of global collateral management and securities clearance services at BNY Mellon broker-dealer services.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe

You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.

Enough with the ‘Bloomberg Killers’ already

Waters Wrap: Anthony interviews LSEG’s Dean Berry about the Workspace platform, and provides his own thoughts on how that platform and the Terminal have been portrayed over the last few months.

Banks seemingly build more than buy, but why?

Waters Wrap: A new report states that banks are increasingly enticed by the idea of building systems in-house, versus being locked into a long-term vendor contract. Anthony explores the reason for this shift.

Most read articles loading...

You need to sign in to use this feature. If you don’t have a WatersTechnology account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here