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05 Oct 2022

BNY Mellon and Pirum Launch New Collateral Optimization Service to Improve Client Profitability

BNY Mellon and Pirum today announced the launch of a joint optimization service to offer collateral providers margining, risk management and inventory management to drive improved risk-return outcomes. The solution, ECPOConnect, combines BNY Mellon’s industry leading collateral management service, ECPO, which optimizes more than $4 trillion in assets globally, with Pirum’s CollateralConnect platform, a SaaS based solution supporting front-to-back cross-asset margin, collateral and inventory management and optimization.

The new service introduces a range of capital efficiency benefits by enabling industry participants to reduce liquidity, exposure and funding costs globally. The platform also addresses firms’ need to centralize collateral management across multiple locations and business lines, including securities lending, repo and derivatives.

To support firms in addressing these challenges, ECPOConnect provides firms with the flexibility to utilize their own in-house optimizer or leverage BNY Mellon’s collateral optimizer, ECPO, to support more sophisticated optimization outcomes such as Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR), Risk Weighted Asset (RWA), central counterparty margining, and more. 

ECPOConnect will offer near real-time connectivity to enable automation and straight-through processing, intraday management of cross-product margin requirements, on-demand execution of collateral coverage and automated mobilization of inventory to meet obligations on a global basis.

“We are pleased to bring an innovative optimization solution to the market that will help our clients improve their profit margins,” said Victor O’Laughlen, Digital Business Leader at BNY Mellon. “We have already put this powerful tool to work using real client data, and the results have clearly shown major efficiencies for clients navigating an increasingly-connected marketplace.”

Phil Morgan, CEO at Pirum, said, “ECPOConnect is an innovative solution offering industry participants a flexible set of optimization solutions to fit their needs.  Combining Pirum’s capabilities with ECPO, clients gain immediate benefits through more efficient funding, liquidity and capital management.”