21 October 2014

CME Clearing Europe goes live with BNY Mellon CSD

03 September 2014  |  828 views  |  0 Source: BNY Mellon

BNY Mellon, a global leader in investment management and investment services, has today announced CME Clearing Europe as the first external client of BNY Mellon CSD SA/NV, the company's Belgium-based central securities depositary.

CME Clearing Europe, CME Group's European clearing house, settled its first securities transaction through BNY Mellon CSD in late August.

Article 47.3 of the European Market Infrastructure Regulation (EMIR) requires that margin collateral for a central counterparty (CCP) must be segregated and held by the operator of a recognised Securities Settlement System (SSS), such as BNY Mellon CSD.

Lee Betsill, CEO at CME Clearing Europe, said: "Our relationship with BNY Mellon CSD is important to us because it means that clients can benefit from an additional option in respect of CME Clearing Europe's collateral protection models, which will in due course include our new fully segregated account structure. This structure ensures that collateral held at a central securities depository is fully segregated at the individual client level, which provides an enhanced level of collateral protection for all scenarios in the event of a bankruptcy."

Chris Prior-Willeard, CEO of BNY Mellon CSD SA/NV, said: "Our appointment by CME Clearing Europe is a key milestone in the ongoing development of our CSD proposition and demonstrates the market recognises the value and innovation we bring to the post-trade infrastructure space. We are committed to establishing further links to support CCPs in managing and accessing a wider range of collateral, as well as offering settlement for all market participants."

As part of its ongoing build-out programme following its establishment as an issuer CSD in December 2012, BNY Mellon CSD established a link with Euroclear Bank in June 2014 as the first step to its transition to investor CSD status. In March of this year, BNY Mellon CSD was accepted as a recognised system for settling transactions in securities listed on the two markets operated by the Luxembourg Stock Exchange. 

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