BNY Mellon adds automated notification enhancements to Margin DIRECT liquidity management product

Posted: 8 May 2012 | BNY Mellon | No comments yet

Designed for segregation of pledged collateral balances away from counterparties…

BNY Mellon, the global leader in investment management and investment services, today announced a series of technological enhancements to the notification capabilities of its patent pending Margin DIRECTSM liquidity management product. Margin DIRECT combines BNY Mellon’s custody and liquidity management capabilities for institutional investors looking for segregation of pledged collateral balances away from counterparties.

The new enhancements enable Margin DIRECT users to provide counterparties with electronic notification of certain critical events such as notices of exclusive control and termination events. These electronic notifications provide a timely and cost-effective alternative to written notices.

Clients can also use the new notification capability to upload and send documents as attachments to notifications. Both parties can assign sender credentials to specific individuals in their respective organizations. This provides an added layer of security in terms of restricting the ability to initiate default or bankruptcy notifications to specifically credentialed individuals.

“It’s essential to anticipate client needs, and post Dodd-Frank, demand for segregation of collateral and margin services will continue to grow. Our patent pending Margin DIRECT product is an innovative technological solution that builds on our industry leading custodial and liquidity services and makes us uniquely qualified to meet these clients needs head on,” said Jonathan Spirgel, Executive Vice President and Head of Liquidity Services for BNY Mellon.

BNY Mellon developed Margin DIRECT by combining two of its industry-leading services — custody and its Liquidity DIRECTSM liquidity management portal — into a single comprehensive solution. Margin DIRECT provides both safekeeping and liquidity management controls for posted margin balances away from an institutional investor’s counterparties, with balances held in custody and directed via a user-friendly online portal for investment to an extensive array of client-selected liquidity investment products. Additional investment options in the form of individual securities are provided through BNY Mellon Capital Markets, LLC, a registered broker-dealer.

For institutional investors, the combination of collateral segregation and liquidity management available via Margin DIRECT enables users to significantly reduce the extent of their counterparty exposure while also creating the potential for income. Margin DIRECT has a host of service features, including the establishment of accounts for each counterparty; straight-through-processing for optimum transaction speed; and reporting for the institutional investor and various counterparties that reflects the institutional-strength reporting capabilities of BNY Mellon’s custody and liquidity management platforms. Margin DIRECT offers real time reporting to help investors monitor liquidity, and ensure proper collateralization.

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