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.
Should regulators take a more active role when it comes to AI oversight, or leave it to the professionals? What will M&A look like in 2018?Subscribe to Weekly Wrap emails
- AFTAs 2017: Best Front-Office Initiative—State Street Global Exchange
- AFTAs 2017: Best Third-Party Technology Vendor CIO or CEO—Neil Barua, IPC Systems
- AFTAs 2017: Best Analytics Initiative—Credit Suisse
- AFTAs 2017: All the Winners and Why they Won
- AFTAs 2017: Best Data Management Initiative—Deutsche Bank