The Bank of New York Mellon Appointed by MGM Assurance to Provide Derivatives Margin Management Service
July 31 2007 - 7:55AM
PR Newswire (US)
NEW YORK, July 31 /PRNewswire-FirstCall/ -- The Bank of New York
Mellon, a global leader in asset management and securities
servicing, has been appointed by MGM Assurance to provide a
comprehensive derivatives margin management solution that
facilitates the administrative and processing requirements
associated with posting and receiving collateral in connection with
over-the- counter (OTC) derivatives trades. As part of the
appointment, The Bank of New York Mellon will monitor performance
under MGM Assurance's ISDA Credit Support Annex -- the legal
document widely used to govern OTC derivatives trades -- including
calculating derivatives exposure, receiving and delivering of
collateral, and reinvesting cash collateral. Nigel Sherry, chief
operating officer at MGM Assurance, said, "Derivatives have become
increasingly important as a risk-management tool for our insurance
and pensions-related products. We were therefore keen to identify a
provider who had expertise in monitoring complex derivative
transactions and proven systems for comprehensive, speedy
settlement. We are very pleased to be working with the team at The
Bank of New York Mellon, who are acknowledged experts in this
growing field." Art Certosimo, executive vice president and head of
broker dealer services at The Bank of New York Mellon, said, "There
has been tremendous growth in derivatives trading and the use of
collateral to support such trading, which will increasingly make
our derivatives margin management service an important component of
such programs. We will tailor our capabilities to meet MGM
Assurance's evolving needs by delivering the industry's leading
administrative and operational services." Through its derivatives
margin management service, The Bank of New York Mellon maintains
derivatives trades and values on its systems, monitors margin
parameters, and calculates margin status. In addition, it provides
Web-based reporting capabilities and workflow management tools
designed to help clients reduce risk and enhance access control.
MGM Assurance is the UK's oldest registered company. It is a mutual
insurance company and manages assets in excess of 1.6 billion
pounds Sterling. MGM's commitment to customer satisfaction is
backed up by a customer charter, which promises high quality
service and ease of mind. The Bank of New York Mellon's derivatives
margin management service is provided through The Bank of New York,
a subsidiary of The Bank of New York Mellon Corporation. The Bank
of New York Mellon Corporation is a global financial services
company focused on helping clients manage and move their financial
assets, operating in 37 countries and serving more than 100
markets. The company is a leading provider of financial services
for institutions, corporations and high-net-worth individuals,
providing superior asset management and wealth management, asset
servicing, issuer services and treasury services through a
worldwide client-focused team. It has more than $20 trillion in
assets under custody and administration and more than $1 trillion
in assets under management. Additional information is available at
http://www.bnymellon.com/. DATASOURCE: The Bank of New York Mellon
Corporation CONTACT: Ronald W. Sommer of The Bank of New York
Mellon Corporation, +1-412-236-0082, Web site:
http://www.bnymellon.com/
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