BNY Mellon sending buy-side non-cleared margin flow to AcadiaSoft

Buy-side derivatives market participants are now able to fully outsource their entire non-cleared margin workflow via the market’s first end-to-end collateral solution developed by BNY Mellon.

Going forward, BNY Mellon’s clients can access AcadiaSoft’s Initial Margin (IM) Risk Suite of low-touch tools for margin calculation, reconciliation and messaging as part of the bank’s collateral service offering.

Combined with BNY Mellon’s existing bilateral margin capabilities from post-trade and settlement through to collateral segregation and ongoing position monitoring, this means clients can meet their obligations under Phases 4 and 5 of the non-cleared margin rules, all in one place.

Under the rules, counterparties are required to calculate IM on non-cleared derivatives trades. Depending on the portfolio in question, these calculations may be numerous and complex, and they are required to be computed daily.

AcadiaSoft acts as a central repository for calculating IM, enabling market participants to use the utility as a single point of contact through which to conduct their messaging and calculations.

While already utilizing AcadiaSoft for margin messaging, BNY Mellon now becomes the first collateral outsource provider to support the IM calculation and reconciliation needs of clients that fall within the scope of the non-cleared margin rules.

“Our aim is to streamline the collateral workflow for clients, making it easier for them to meet their regulatory requirements. Adding the AcadiaSoft functionality means they’ll only need to share their derivatives portfolio with us once daily: thereafter, we’ll calculate their IM and instruct the movement of the collateral required accordingly,” said Jonathan Spirgel, global head of Liquidity and Segregation Services at BNY Mellon, in a statement.

Read the full release

Related Posts

Previous Post
On ESG, Bank of England SecLending Committee says no changes but more dialog with clients
Next Post
J.P. Morgan adds ESG risk data to institutional platform

Related Posts

Fill out this field
Fill out this field
Please enter a valid email address.


Reset password

Create an account