CME Clearing Europe Selects BNY Mellon as CSD

The firm began settling trades through the CSD at the end of August, becoming the first external client of the bank's initiative. Rules stemming from the European Market Infrastructure Regulation mandate that margin collateral at a central counterparty clearing house (CCP), such as CME Clearing Europe, must be held by a settlement provider such as BNY Mellon CSD.

"Our relationship with BNY Mellon CSD is important to us because it means that clients can benefit from an additional option in respect of CME Clearing Europe's collateral protection models, which will in due course include our new fully segregated account structure," says Lee Betsill, CEO at CME Clearing Europe. "This structure ensures that collateral held at a central securities depository is fully segregated at the individual client level, which provides an enhanced level of collateral protection for all scenarios in the event of a bankruptcy."

CME Clearing Europe is the European CCP operated by the Chicago Mercantile Exchange Group.