Pershing, a BNY Mellon company, has enhanced its PrimeConnect application, most notably adding a seamless link to Pershing’s Fully Paid Securities Lending program.
The new connection to Pershing’s Fully Paid Securities Lending program allows hedge funds, through a fully automated solution, to transfer fully paid securities from BNY Mellon to Pershing, at which point the securities are available to be borrowed by Pershing.
It also allows hedge fund managers to be able see the earning potential for fully paid assets in the Prime Services dashboard on NetX360, Pershing’s technology platform.
Pershing’s PrimeConnect provides hedge fund managers, who use a bank custodian, to hold unencumbered assets with transparency and control of collateral selection and movements. Its counterpart, PrimeConnect40, is the technology for ’40 Act fund managers using the tri-party structure to support alternative strategies.
By using real-time connectivity to Pershing’s margin systems, the PrimeConnect applications are able to calculate the effect of specific securities movements before a fund manager commits to action. This helps fund managers deploy their collateral in the most efficient manner possible.
Additional updates to both PrimeConnect and PrimeConnect40 include workflow improvements, greater collateral management and easier viewing of asset movements across bank and custody accounts.
Gerry Tamburro, managing director at Pershing, said: "PrimeConnect and PrimeConnect40 are integral parts of Pershing’s prime brokerage offering built on our counterparty strength, innovative technology, uncompromised commitment to our client’s business and an exceptional level of transparency. PrimeConnect and PrimeConnect40 can help increase operational efficiencies for hedge fund and mutual fund managers by allowing them to move collateral in an efficient and transparent way."
Additionally, with real-time acknowledgement of requests, PrimeConnect and PrimeConnect40 can group transfers into units of work to ensure that either all movements are successful or none are completed. This gives fund managers the freedom to substitute collateral throughout the day.
Moreover, dual-level approval options provide flexible approval streams to meet client’s internal workflow requirements.
Brian Ruane, CEO of Broker-Dealer Services at BNY Mellon, said: "Pershing’s PrimeConnect is just one example of how BNY Mellon is leading the way in helping clients to source and optimize collateral, enhance the velocity and mobility of that collateral, and to address their wider requirements around liquidity, financing and reporting."