BNY Mellon has been awarded a patent from the United States Patent and Trademark Office for a process enabling the secure management of collateral between counterparties via its Margin DIRECT service.
BNY Mellon said it Margin DIRECT will help clients limit exposure to trading counterparties. The product provides custody and liquidity services for posted margin collateral in counterparty transactions, offering a strong element of risk mitigation between counterparty relationships and helping to facilitate marketplace liquidity through the use of a third party custodian.
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Kurt Woetzel, CEO of BNY Mellon’s global collateral services business, said: "One of the most important lessons learned from the financial crisis is that institutions require capabilities that help maximize liquidity and access to collateral.
"With today’s new regulatory requirements, there is an increased emphasis on collateral – clients need to know where to find it, how to protect it and how to unlock additional investment potential, while also working to reduce counterparty exposure," Woetzel added.
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