Risk Mitigation Partner

The Bank of New York Mellon is well established in the Collateral Management sector with a global suite of services. Global Collateral Management (GCM) is broken into two key functions – Collateral Trading and Collateral Risk Mitigation. Our extensive skills and experience in Collateral Trading have been applied in the development of the DM Edge service, which is the BNYM trade name for derivatives margin management. DM Edge is a global service with operational hubs in Singapore, Brussels and New York providing a 24 hour client coverage facility for margin management. The teams in each location have extensive experience in collateral risk mitigation and the management of assets taken as margin.

DM Edge is a full 'front-to-back' service for derivatives and repo margin management which provides a fully outsourced offering with BNY Mellon acting as agent for our clients in a bilateral margin arrangement. This typically involves ISDA CSA or ISMA GMRA agreements but we are able to accommodate any style of margin agreement. The service is designed to accommodate daily, weekly or monthly call frequencies with collateral assents received/delivered in the form of cash, bonds or equities.

Reconciliation of the trade level portfolio can be offered on a regular basis (daily, weekly, monthly) or on dispute requirement basis. The reconciled results are shared with our clients and exchanged with the counterparty to help resolve position and deal level valuation discrepancies. BNY Mellon was the first service provider in the industry to deliver client self-service to enable their clients to have immediate access to their own critical collateral-related information. By using BNY Mellon collateral management services, clients can stay on top of their collateralized derivatives-related exposure to control collateral calls and approve settlements, especially when markets shift.