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05 Oct 2021

Pirum and BNY Mellon integrate Triparty Collateral Schedules into CollateralConnect

bny mellon

Pirum and BNY Mellon have collaborated to integrate BNY Mellon’s state-of-the-art digitized triparty collateral schedules into Pirum’s CollateralConnect service.  

This launch leverages BNY Mellon’s automated delivery service and integrates the firm’s triparty schedule and collateral acceptability data into Pirum’s collateral eligibility and optimisation services.  

Pirum’s CollateralConnect service provides a real-time, centralised view of margin obligations, digitised eligibility and global inventory management capabilities to manage collateral across all major venues and products, including securities lending, repo and derivatives.     

With CollateralConnect, firms can improve the management of both delivered and received assets through its eligibility checking controls that monitor adherence to collateral schedule criteria. In addition, the service examines collateral allocation compliance with regulatory requirements such as UK CASS, EU MiFID and US Dodd-Frank. 

The incorporation of BNY Mellon’s digitised eligibility service into CollateralConnect ultimately drives  smarter decision-making through its support of algo-based portfolio optimisation tools. 

 “The addition of BNY Mellon triparty collateral schedules and digitised eligibility to CollateralConnect is an important milestone for both collateral receivers and providers, especially where firms require an automated centralised schedule repository, enabling efficient collateral management across all their margin activities,” said Todd Crowther, Head of Client Innovation at Pirum. 

“We see our clients benefiting from the combination of CollateralConnect and digitised eligibility where they are able to achieve material cost savings, enhanced returns, better financial resource utilisation, improved risk and exposure management as well as better regulatory compliance,” Crowther added.

“We’re supportive of financial technology providers like Pirum that connect into existing market infrastructure to enable clients to be more efficient. That’s why we are pleased that our digitized triparty collateral schedules and position eligibility API data is available to our mutual clients, empowering them to optimise the use of their securities inventory,” said Victor O’Laughlen, Digital Business Leader within Clearance and Collateral Management at BNY Mellon. “This is what our Future of Collateral digital strategy is all about: building the connections clients need to mobilize their assets, increase the velocity at which those assets move and make their collateral work harder for them.”  

BNY Mellon’s Future of Collateral initiative is designed to create an optimized and harmonized global collateral ecosystem that will enable BNY Mellon clients to seamlessly utilize collateral assets located around the world within one unified collateral environment.