The Bank of New York has established a real-time, direct link with French settlement agency Sicovam, in an initiative aimed at enhancing its tri-party repo and global collateral management services for the European marketplace.
The link is powered by the bank's proprietary collateral management system, RepoEdge and will be able to provide integrated servicing of both global fixed income and equity holdings of its broker-dealer clients, whether at Sicovam, the Federal Reserve Bank, DTC or Euroclear, says the company.
The bank claims the link will allow clients to optimise their use of global securities to raise the financing they require or to collateralise securities borrowing.
Art Certosimo, senior vice president, The Bank of New York says cross-border collateral movements are gaining momentum and that financial institutions are evaluating their collateral needs on an institution-wide basis. He continues: "The industry requires efficient, real-time linkages to depositories as well as a wide range of securities options. As part of the Euroclear group, Sicovam gives access to all European securities markets."
Jeffrey Tessler, executive vice president, The Bank of New York expects the initiative to promote growth in the existing European tri party market and attract new entrants. "This initiative will open up the cross border market to clients who, because of operating limitations, previously focused solely on domestic debt as collateral," he says.