The Bank of New York Mellon (NYSE: BK), the global leader in asset management and securities servicing, announced today the launch of a universal custody and trade settlement platform for carbon credits.
Global Environmental Markets ("GEM") has been developed to help customers manage credits through a single web-based interface.
The platform addresses the challenges of administering the variety of regulated and unregulated standards of environmental credits recorded on different registries. Typically these are managed separately through various systems and spreadsheets which can make reporting and tracking complex and time-consuming. In response, GEM brings registries, units and standards into one place allowing clients a single entry point to manage all credits in their portfolio.
The Bank of New York Mellon's GEM platform provides a powerful reporting system, which is at the heart of the company's carbon credit custody and escrow services. This system acts as a client's books and records and generates detailed account statements, allowing it to meet the specialized reporting needs of this sector. The system also simplifies the reconciliation process by accommodating segregated accounts and producing customized reports with user-defined start and end dates.
Combined with The Bank of New York Mellon's global cash clearing infrastructure, GEM also supports settlement of credit trades against payments simultaneously, which helps lower operational risks and increase efficiency.
Scott Posner, chief executive officer of The Bank of New York Mellon's Global Corporate Trust business, commented, "GEM provides a robust and secure infrastructure for this rapidly growing area and a portal to our systems and facilities that link to the world's financial markets. These systems are in turn supported by our global technology capabilities and capacity, in readiness for the anticipated growth in these markets."
Through its Global Corporate Trust business, The Bank of New York Mellon offers a global custody service to facilitate trading of carbon credits. The company provides custody services for VCS v1 credits and escrow services for Regulated Carbon Credits.