The bank will integrate the messaging solution from AcadiaSoft into its platform for institutions' collateral management.
Global custodian BNY Mellon announced its collateral management platform offered to institutional clients will now include a central messaging service—connected through AcadiaSoft's MarginSphere margin call system— that will allow clients to electronically send margin calls, substitution instructions and interest statements.
With the move, BNY joins eight other large financial institutions that have chosen MarginSphere since the service's inception.
The service, offered through BNY's Derivatives360 business, will enable market participants to communicate information about exposures and commitments securely and in real-time, as well as produce audit trails—reducing operational risk and increasing transparency as new regulations are coming into force globally, the bank says.
"We recognize the need to help streamline the margin process in a way that is compliant with emerging risk management infrastructures. The new service automates collateral communications with counterparties and provides secure electronic management of margin calls, substitutions, and interest statement processing," says James Malgieri, head of global collateral management and securities clearance at BNY Mellon.
Adam Sussman joins Anthony Malakian to talk about Liquidnet's acquisition of OTAS, machine learning and AI, and what the buy side wants from analytics platforms.Subscribe to Weekly Wrap emails