CME introduces BoNY collateral management programme

CME introduces BoNY collateral management programme

The Bank Of New York and Chicago Mercantile Exchange (CME) have introduced a new collateral management programme which expands the range of collateral that CME members can use to satisfy margin requirements.

Using the system, CME clearing members will be able to achieve straight-through processing, maximise their use of collateral and gain new collateral flexibility, says BoNY.

The programme is based on the Bank of New York's proprietary collateral management system, RepoEdge, and experience in collateral pricing. In addition, CME clearing members will maintain the ability to deposit collateral at other custodians.

Art Certosimo, senior vice president and head of the broker/dealer services division at the Bank of New York says: "CME participants will, for the first time, be able to easily substitute collateral to meet changing market needs, in addition to using a broader array of collateral."

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