NEW YORK, Nov. 12, 2020 /PRNewswire/ -- Buy-side
investment managers are now able to take full control over the
collateralization of non-cleared derivatives following the
introduction of MarginConnect, BNY Mellon's new margin messaging
capability.
Utilizing MarginConnect, managers who wish to retain control
over the collateralization of their non-cleared derivatives
activity can now do so, leveraging a direct connection between
AcadiaSoft and BNY Mellon.
Until now, buy-side derivatives users traditionally have not
been able to keep management of their non-cleared OTC collateral
entirely in-house. This is because instructions to move collateral
assets among custodians typically rely upon SWIFT messaging.
The vast majority of buy-side entities do not have a SWIFT
network membership, meaning that they have had to either build and
maintain their own connectivity to their custodian or outsource the
messaging component instructing the actual movement of collateral
to a SWIFT member.
MarginConnect addresses this gap in the workflow by enabling
managers to bypass the costs associated with the SWIFT network by
sending messages via BNY Mellon's MarginConnect offering, which is
fully integrated into the AcadiaSoft platform.
Utilizing this link, clients are able to generate collateral
instructions within the AcadiaSoft ecosystem without having to
separately create and deliver SWIFT messages or log into their BNY
Mellon triparty or third-party collateral account.
"MarginConnect will enable those newly in-scope clients that
wish to keep control of their own collateral management under the
next two phases of the non-cleared margin rules to do precisely
that: maintain control," says Dominick
Falco, Head of Collateral Segregation at BNY Mellon. "Being
the first collateral manager to fully integrate our messaging with
AcadiaSoft means that our clients will be able to seamlessly
communicate with BNY Mellon and trade counterparties without having
to rely on an intermediary."
"AcadiaSoft is continually striving for workflow automation and
cost efficiency; integrating our industry-standard messaging
platform into MarginConnect provides the next step on this journey
toward zero-touch processing. We are excited to play a central role
in helping our mutual clients benefit from a seamless workflow in
the non-cleared derivatives space and furthering our partnership
with BNY Mellon," says Mark Demo,
Head of Community Development at AcadiaSoft.
MarginConnect's straight-through processing can also reduce
operational risk by eliminating the need to manually enter
messaging details, since trade calculations are auto-generated
within the platform.
In May 2019, BNY Mellon and
AcadiaSoft unveiled a comprehensive collateral administration
service that provides a fully outsourced solution for buy-side
firms seeking to comply with the non-cleared margin rules.
MarginConnect complements that end-to-end offering with a
cost-effective alternative, enabling those market participants with
the capability to manage their own collateral processes to conduct
their own margin calculation and messaging.
ABOUT BNY MELLON
BNY Mellon is a global investments
company dedicated to helping its clients manage and service their
financial assets throughout the investment life cycle. Whether
providing financial services for institutions, corporations or
individual investors, BNY Mellon delivers informed investment and
wealth management and investment services in 35 countries. As
of September 30, 2020, BNY Mellon had
$38.6 trillion in assets under
custody and/or administration, and $2.0
trillion in assets under management. BNY Mellon can act as a
single point of contact for clients looking to create, trade, hold,
manage, service, distribute or restructure investments. BNY Mellon
is the corporate brand of The Bank of New York Mellon Corporation
(NYSE: BK). Additional information is available on
www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our
newsroom at www.bnymellon.com/newsroom for the latest company
news.
ABOUT ACADIASOFT
AcadiaSoft, Inc. is the leading
industry provider of risk and collateral management services for
the non-cleared derivatives community. AcadiaPlus is a
new-generation open platform that provides the sell-side, the
buy-side and fund administrators with specialist applications and a
third-party partner ecosystem for the straight-through processing
of the entire risk mitigation life cycle. Backed by 16 major
industry participants and market infrastructures, AcadiaSoft is
used by a community of more than 1,350 firms exchanging
approximately $700B of collateral on
a daily basis via its margin automation services. AcadiaSoft is
headquartered in Norwell, MA, and
has offices in London,
New York and Tokyo. For more information, visit
acadiasoft.com.
Contact:
Peter
Madigan
BNY
Mellon
peter.madigan@bnymellon.com
+1 212 815
2308
Laura Craft
AcadiaSoft
laura.craft@acadiasoft.com
+44 20 3954 0196
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SOURCE BNY Mellon