BNY Mellon has created a new company to clear futures and derivatives trades on behalf of institutional clients in Europe, Middle East and Africa. Headquartered in Dublin, the business, BNY Mellon Clearing International Limited (BNYMCIL) is the first MiFID authorised futures and derivatives clearing entity in Ireland and is regulated by the Central Bank of Ireland.
It plans to become a clearing member on major exchanges and central clearinghouses globally to support the trading activities of BNY Mellon clients and intends to lead to the creation of 50 new jobs in Ireland over the next two years.
BNY Mellon Clearing International will be an important addition to BNY Mellon’s Irish operations where the company is ranked the number one fund administrator and currently employs over 1,800 employees, offering a broad range of services to traditional and alternative asset managers, banks, pension funds, insurance companies and corporates. Tim Murphy will serve as head of BNY Mellon Clearing International for Europe, Middle East and Africa, reporting to Sanjay Kannambadi, CEO and global head of BNY Mellon Clearing LLC (BNYMC), who is based in the company’s New York headquarters.
The company plans to clear listed futures and option trades on behalf of institutional clients. Services are expected to include general operations; including trade novation, margin management, risk management, and reporting. As over the counter (OTC) swaps move into control clearing, BNY Mellon Clearing International and BNYMC will provide solutions to clear these products.
“As a leading securities servicer for major derivatives participants, BNY Mellon provides a comprehensive clearing solution to our institutional clients through BNY Mellon Clearing. Through this new entity, we can now offer clients clearing member services for exchange-traded derivative products on exchanges and clearing houses both in the US and Europe,” says Art Certosimo (pictured), CEO of Global Markets at BNY Mellon, responsible for the derivatives clearing business.
Sanjay Kannambadi, CEO and global head of BNY Mellon Clearing adds: “Given the significant regulatory and competitive shifts in the market following the financial crisis, the formation of BNY Mellon Clearing International was strategically timed to meet the emerging and growing needs of our clients. It is critical that we support our clients wherever they want to clear their transactions".
BNY Mellon Clearing LLC already supports the trading activity of clients by providing direct clearing services with major exchanges and central clearinghouses including the New York Mercantile Exchange, Chicago Board of Trade and International Derivatives Clearing Group. The company intends to continue to expand the roster of exchanges through which it clears.