The Bank of New York Mellon (NYSE: BK), the global leader in asset management and securities servicing, has expanded DM Edge, the company's derivatives collateral management service, beyond derivatives to cover a wide range of margin-related activities, including repo and securities lending.
DM Edge facilitates for clients the administrative, processing, reinvestment and valuation activities associated with posting and receiving collateral in a tri-party structure for over-the-counter (OTC) derivatives trades.
The new services, which will be marketed under the brand name RM Edge(SM), allow a wide range of clients who trade bilaterally to outsource margin management to The Bank of New York Mellon. The Company will handle a variety of complex operational and administrative activities, such as monitoring margin parameters and calculating margin status, helping clients to reuse and reinvest their collateral pools.
"We have developed state-of-the-art web interfaces for easy access to intra-day calculations, a wide selection of reports, and real-time data margin position updates, all of which help our clients to mitigate credit risk and maximize the use of their collateral," said Art Certosimo, executive vice president and head of Broker-Dealer and Alternative Investment Services. "As market dynamics change, institutional investors will need to rely on more sophisticated services to reduce risk as well as enhance performance of their assets and we will continue to be the company that meets those needs."