BNY Mellon, a custodian and asset servicing firm, has improved its AccessEdge collateral management system to give clients a clearer view of their OTC derivatives exposures.
AccessEdge is a portal which connects broker dealers with their buy-side clients, enabling the real-time transfer of collateral needed for repo, securities lending, swaps and central counterparty margin calls.
The latest enhancement to the system gives users of AccessEdge the ability to view their collateralised status in real-time via an interactive dashboard.
The dashboard displays a client’s aggregate collateral exposure, including the number of unmatched, mismatched or instructions that are currently open. Users can also view the details of collateral positions and substituted cash collateral, as well as margin excesses and deficits.
“The enhancements to our AccessEdge portal make viewing collateral positions simpler and clearer, increasing transparency for our clients and helping them to make optimal use of the collateral and assets at their disposal,” said James Malgieri, executive vice president, global collateral services, BNY Mellon.
The need for better visibility on collateral across buy- and sell-side firms will increase following the introduction early next year of new derivatives rules in the US and Europe. The rules will push a large segment of the swaps market onto exchange-like platforms and impose central clearing obligations. Buy-side firms will have to post initial margin against their swaps positions and establish processes to meet variation margin calls from central counterparties.
BNY Mellon has $27.1 trillion in assets under custody and administration and manages over $1.8 trillion in collateral transactions each day.