The Bank of New York Mellon Launches MarginDIRECT(SM) Liquidity Management Tool
February 09 2009 - 8:23AM
PR Newswire (US)
Single Solution Combining Custody and Money Funds Management
Capabilities Will Help Hedge Funds Manage Margin Positions NEW
YORK, Feb. 9 /PRNewswire-FirstCall/ -- The Bank of New York Mellon
today announced the launch of MarginDIRECT(SM), an innovative new
liquidity tool that helps hedge funds manage margin positions and
reduce counterparty risk in an uncertain credit environment. (Logo:
http://www.newscom.com/cgi-bin/prnh/20071001/NYM012LOGO ) Drawing
upon its strengths as the global leader in asset management and
securities servicing, The Bank of New Mellon developed MarginDIRECT
by combining two of its industry-leading services --- custody and
MoneyFunds DIRECT --- into a single comprehensive solution managed
by The Bank of New York Mellon's Liquidity Services group.
MarginDIRECT provides safekeeping for posted margin balances away
from a hedge fund's over-the-counter (OTC) derivative trading
counterparties, and thereby reduces the hedge fund's risk exposure.
Margin assets received on behalf of clients are targeted for
investment through MoneyFunds DIRECT, the bank's on-line liquidity
portal that provides direct access to over 100 money market funds
in multiple currencies, as well as individual money market
securities, on a single, centralized investment and reporting
platform. MarginDIRECT's key service features include the
establishment of multiple accounts for each hedge fund
counterparty, straight-through-processing for optimum transaction
speed, and robust reporting --- via both traditional periodic
reports and on-line updates --- for the hedge fund and its
counterparties. In addition, to maximize liquidity, MarginDIRECT
offers real-time reporting on all margin activity; by ensuring that
both parties can monitor that they are fully collateralized, this
reporting can significantly reduce hedge fund risk exposure.
"MarginDIRECT reflects our commitment to helping our clients
succeed in the current credit environment," said Jonathan Spirgel,
managing director and global head of liquidity services at The Bank
of New York Mellon. "Hedge funds need access to resources that
measure up to today's challenging market conditions, and
MarginDIRECT can serve as a single and complete solution for
managing margin positions, account data and money market
investments," he said The Bank of New York Mellon Corporation is a
global financial services company focused on helping clients manage
and service their financial assets, operating in 34 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, clearing
services and treasury services through a worldwide client-focused
team. It has $20.2 trillion in assets under custody and
administration, $928 billion in assets under management and
services more than $11 trillion in outstanding debt. Additional
information is available at http://www.bnymellon.com/.
http://www.newscom.com/cgi-bin/prnh/20071001/NYM012LOGODATASOURCE:
The Bank of New York Mellon CONTACT: Ron Sommer, The Bank of New
York Mellon, +1-412-236-0082, Web Site: http://www.bnymellon.com/
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