Pershing Introduces Enhanced Collateral Management Applications for Funds

PrimeConnect will help funds track movement of collateral from custodians to prime services, as well as tri-party agreements.

Fund management solutions provider Pershing, part of BNY Mellon, has announced new applications for its enterprise collateral management offering, which automate the process of moving collateral between the custodian and Pershing's prime services using the company's NetX360 platform.

The applications will be called PrimeConnect, designed to enhance transparency and selection control for hedge fund managers, as well as tri-party structure movements in support of alternative strategies for “40 Act” fund managers—for funds, previously offshore, that have recently registered domestically under the Investment Company Act of 1940.

Pershing says the new products will be useful for customers in an era when collateral management is moving from middle office to risk management.

"Increasing concern over counterparty risk, coupled with the traditionally cumbersome and time-consuming collateral management process, has led many fund managers to be cautious when pledging collateral to their counterparties. PrimeConnect and PrimeConnect40 not only eliminate the phone calls, faxes and emails, but they provide a clear window into the movement and management of collateral. Because these applications provide both a consolidated view of an overall portfolio and an online and real-time margin calculator, fund managers are able to more efficiently and effectively place collateral," says Gerry Tamburro, managing director at Pershing.