BNY Mellon has been assigned responsibility for the US Treasuries’ European market infrastructure regulation (EMIR) compliant clearing and custody services within Nasdaq OMX Group’s new European clearing business.
Like Dodd-Frank in the US, EMIR involves the migration of OTC derivatives from bilateral clearing to Central Counterparty (CCP) clearing. The new mandate extends BNY Mellon’s current responsibilities at Nasdaq OMX from existing simply as one the exchange’s current cash settlement banks, to facilitating this migration.
Scott Coey, head of broker-dealer services EMEA at BNY Mellon explained, “The changes brought about by Dodd-Frank and EMIR have created a pressing need for the industry to identify and implement solutions to manage liquidity and reduce costs. Nasdaq OMX Clearing’s decision to expand our valued relationship to include our comprehensive clearing and custody solutions illustrates the depth of support and expertise we can offer our clients across the investment lifecycle.”
Johan Rudén, head of global post-trade at Nasdaq OMX, commented, “BNY Mellon demonstrated to us that it has the market position and experience in the US treasury market required to provide effective clearing and custody support. The company has proven its commitment to providing excellent service to us and our clients. BNY Mellon’s support will be invaluable as we build our market position following the launch later this year.”