BNY Mellon’s LiquidityDirect Further Expands Suite of Short-End Investment Options, Introduces ESG Analytics

LiquidityDirect clients are now able to seamlessly invest cash in commercial paper (CP)* and exchange-traded funds (ETFs)* while also being able to leverage a new search application that introduces Environmental, Social and Governance (ESG) ratings onto the portal.

The addition of these new investment options and ESG analytics represents the next step in the expansion of LiquidityDirect, BNY Mellon’s market-leading short-end investments platform, to deliver a comprehensive range of liquidity management and investment choices across the short end of the curve.

“Clients are looking to easily access investments with different returns, terms, and risk profiles via a single platform. Our latest expansion, which follows on from the addition of sponsored cleared repo earlier this year, provides clients with industry-leading capabilities that address their investment needs via a simplified user experience,” says George Maganas, Global Head of Liquidity & Margin Services at BNY Mellon.

“We’ve been listening to our clients and it’s clear that today, investing is about more than just returns. We have to help clients address the ESG investment challenges they face across a range of issues, from non-standardization to securing meaningful insights on the environmental and social impact of their investments. This is why we are adding capabilities to embed clients’ ESG investing criteria in their short-term cash management, helping them to connect the dots between their values and investments,” Maganas concludes.

The new offerings on LiquidityDirect enable clients to select from a range of investments at the click of a button:

Commercial Paper (CP) is short-duration debt issued by banks and corporations with maturities ranging from overnight to one year. Yields on cash invested in CP offer opportunities for higher and differentiated returns compared to other short-term investments.

Short-Duration Fixed Income ETFs typically invest in short-term, high-quality government securities like US Treasury bills or investment-grade corporate bonds and are an alternative near-term investment option.

Socially responsible and sustainable investing is of growing importance. LiquidityDirect’s new focused investing capabilities, which are powered by BNY Mellon’s ESG Data Analytics, help clients quickly and easily analyze ESG ratings of eligible investment options to enable alignment with their corporate social and ethical values.

In addition, LiquidityDirect is increasing access to its investment platform for clients through a new collaboration with treasury workstation provider Indus Valley Partners (IVP). To date, LiquidityDirect is also fully integrated with cash management systems such as GTreasury and Hazeltree.

Since its launch in 1997, LiquidityDirect has established itself as one of the market’s leading portals for investing in all types of money market funds and sponsored cleared repo. As of year-end 2020, the platform supported almost $9 trillion in transaction flow annually for more than 700 of the world’s largest corporations and institutional investors.

*Products offered only in the US to institutional clients, unless otherwise permitted by local law, on LiquidityDirect through BNY Mellon Capital Markets, LLC.

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