The Bank of New York Mellon, a global leader in securities servicing and asset management, has introduced Derivatives360, an integrated investment servicing lifecycle solution to help clients efficiently execute and manage derivatives transactions.
Derivatives360's flexible modular design allows clients to select some or all of the components offered by the new platform, allowing them to focus resources and management time on their core activities.
Clients are today looking to outsource derivative functions historically handled in-house for a number of reasons, including credit considerations, product complexity, the high investment costs associated with specialist systems, a shortage of high-calibre staff, stronger regulation and the wider industry drive towards standardisation.
Whether clients are using derivatives as a hedging tool or as a separate investment strategy, Derivatives360 offers a broad array of services for issuers and investors around the execution and processing of derivatives. These include:
- Trading and execution
- Middle- and back-office outsourcing
- Collateral management
- Accounting and recordkeeping
- Reporting
- Performance and risk analytics
Derivatives360 also encompasses the following outsourced services:
- OTC trade affirmation and confirmation
- Trade settlement
- Independent (third-party) valuation
- Counterparty and investment manager reconciliation
- Collateral management
- Lifecycle event management
- Futures margin management
As a derivatives counterparty, The Bank of New York Mellon is highly rated (Aaa) [as at June 1, 2009] - a fundamental consideration for anyone who is looking to transact in today's environment. Operating from three of the world's major money centres, the company maintains a significant presence in the interest rate, equity and foreign-exchange derivatives arena, acting as a global, multi-asset derivatives dealer through to supporting the entire processing lifecycle to maturity.
Tim Keaney, Chairman of Europe and Head of Global Client Management at The Bank of New York Mellon and co-CEO of BNY Mellon Asset Servicing, said: "Derivatives360 leverages The Bank of New York Mellon's existing expertise, sophistication and experience around derivatives processing and settlement to provide end-to-end support and transparency, before, during and after a trade. As such it reinforces our long-standing commitment to providing our clients with simple solutions for complex problems."