Pershing, a BNY Mellon company, has launched two new applications as part of its extensive Enterprise Collateral Management offering that automate the process of moving collateral between the custodian and Pershing Prime Services.
This service is available exclusively through Pershing’s NetX360, the company’s technology platform for fund managers and investment professionals.
Called PrimeConnect, the system provides unprecedented transparency and control of collateral selection and movements to hedge fund managers using BNY Mellon to hold unencumbered assets. PrimeConnect40 also offers unparalleled transparency and online collateral movement to ’40 Act fund managers using the tri-party structure to support alternative strategies. In these times of financial uncertainty, these applications help generate operational efficiencies and cost-savings as well as address managers’ concerns about counterparty risk and collateral management.
"Increasing concern over counterparty risk, coupled with the traditionally cumbersome and time-consuming collateral management process, has led many fund managers to be cautious when pledging collateral to their counterparties,” says Gerry Tamburro, managing director at Pershing. “PrimeConnect and PrimeConnect40 not only eliminate the phone calls, faxes and emails, but they provide a clear window into the movement and management of collateral. Because these applications provide both a consolidated view of an overall portfolio and an online and real-time margin calculator, fund managers are able to more efficiently and effectively place collateral.”
Collateral management has long been considered a standard middle-office function. However, the current financial volatility has elevated the role of collateral management to a key risk management function. By automating this process through online and real-time applications, Pershing has significantly enhanced its fund manager clients’ ability to monitor and manage risk.
Gerry Tamburro adds: “This technology represents the first time hedge funds and ’40 Act funds have been able to deploy real-time collateral management tools to automate the processes of moving collateral between accounts and securing credit and risk approvals. We believe the transparency, control and efficiencies these applications deliver will be highly attractive to all fund managers.”