BNY Mellon clears securities lending for clients.
BANKING AND CREDIT NEWS-June 21, 2019-BNY Mellon clears securities lending for clients
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BNY Mellon has announced it has been centrally cleared for a security lending transaction through Eurex Clearing's Lending CCP platform on behalf of a buy-side client, the company said.
The trade, which was executed by BNY Mellon on behalf of an insurance company client, originally faced Morgan Stanley as counterparty, and ultimately cleared with Eurex Clearing, a central counterparty (CCP). The trade was matched and novated through Pirum's CCP Gateway.
This transaction represents a major new route to market for BNY Mellon's securities lending clients who will now have the ability to capitalize on growing market demand to undertake securities finance within a centrally-cleared environment, but without the obligations and responsibilities of traditional clearing house membership.
This is the first time an agent lender has cleared a securities lending transaction through the Eurex Clearing model. Under this structure, a securities loan is negotiated bilaterally with the borrower, except that in this instance both parties agree to clear the transaction. The loan is novated to and settled with Eurex Clearing, which then becomes the counterparty to both the lending client and the borrower. BNY Mellon administers the loan with Eurex Clearing until the securities are returned and the loan is closed.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. BNY Mellon delivers informed investment management and investment services in 35 countries. As of March 31, 2019, BNY Mellon had USD 34.5 trillion in assets under custody and/or administration, and USD 1.8 trillion in assets under management.
Eurex Clearing's Lending CCP covers loans in global fixed income securities, equities and exchange-traded funds in Europe; its strategic partners are some of the largest providers of financial services to institutional investors and securities lending agents.
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|Publication:||M2 Banking & Credit News (BCN)|
|Date:||Jun 21, 2019|
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