BNY Mellon launches global derivatives margin management service MarginEdge
BNY Mellon has launched MarginEdge, a global derivatives margin management service that allows financial institutions, clearing members and central counterparties (CCPs) to manage margin collateral efficiently while balancing trading costs and capital requirements associated with listed, cleared over-the-counter (OTC) and bilateral OTC derivatives.
Through MarginEdge, market participants use BNY Mellon’s technology and expertise to reduce risk and increase efficiency in the complex derivatives collateral management process. In particular, MarginEdge helps segregate assets, supports transformation services, optimises the use and allocation of collateral, consolidates margin management across collateral locations and providers, and simplifies connectivity among market participants for margin movements.
“Given our global capabilities in servicing clients’ fixed income and equity collateral management needs, this strategic expansion into helping clients with their derivatives collateral management needs represents a natural evolution of our business model,” says James Malgieri (pictured), CEO of BNY Mellon Broker-Dealer Services. “We have the operational infrastructure and expertise, as well as a deep understanding of the global financial markets, which position us to meet our clients’ evolving needs anywhere in the world.”
“Global regulatory reforms are driving profound changes in the derivatives markets, making operational efficiencies, risk reduction and increased transparency the critical components in any derivatives margin process,” says John Vinci, global head of Product Management and Strategy for BNY Mellon Broker-Dealer Services. “MarginEdge helps market participants navigate the challenge of managing the costs and operational complexities linked to regulatory changes while meeting their required financial performance and goals.”
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