LONDON, Sept. 3, 2014 /PRNewswire/ -- BNY Mellon, a global leader in investment management and investment services, has today announced CME Clearing Europe as the first external client of BNY Mellon CSD SA/NV, the company's Belgium-based central securities depositary.
CME Clearing Europe, CME Group's European clearing house, settled its first securities transaction through BNY Mellon CSD in late August.
Article 47.3 of the European Market Infrastructure Regulation (EMIR) requires that margin collateral for a central counterparty (CCP) must be segregated and held by the operator of a recognised Securities Settlement System (SSS), such as BNY Mellon CSD.
Lee Betsill, CEO at CME Clearing Europe, said: "Our relationship with BNY Mellon CSD is important to us because it means that clients can benefit from an additional option in respect of CME Clearing Europe's collateral protection models, which will in due course include our new fully segregated account structure. This structure ensures that collateral held at a central securities depository is fully segregated at the individual client level, which provides an enhanced level of collateral protection for all scenarios in the event of a bankruptcy."
Chris Prior-Willeard, CEO of BNY Mellon CSD SA/NV, said: "Our appointment by CME Clearing Europe is a key milestone in the ongoing development of our CSD proposition and demonstrates the market recognises the value and innovation we bring to the post-trade infrastructure space. We are committed to establishing further links to support CCPs in managing and accessing a wider range of collateral, as well as offering settlement for all market participants."
As part of its ongoing build-out programme following its establishment as an issuer CSD in December 2012, BNY Mellon CSD established a link with Euroclear Bank in June 2014 as the first step to its transition to investor CSD status. In March of this year, BNY Mellon CSD was accepted as a recognised system for settling transactions in securities listed on the two markets operated by the Luxembourg Stock Exchange.
Notes to editors:
Established in December 2012, BNY Mellon CSD SA/NV provides issuer, settlement and safekeeping services for the benefit of all market participants across Europe and the wider global marketplace. Additional information is available on www.bnymelloncsd.com
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of June 30, 2014, BNY Mellon had $28.5 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com or follow us on Twitter @BNYMellon.
This press release is issued by The Bank of New York Mellon to members of the financial press and media. All information and figures source BNY Mellon unless otherwise stated as at June 30, 2014. The Bank of New York Mellon, London Branch, registered in England and Wales with FC005522 and BR000818. Branch office: One Canada Square, London E14 5AL. The Bank of New York Mellon is supervised and regulated by the New York State Department of Financial Services and the Federal Reserve and authorised by the Prudential Regulation Authority. The Bank of New York Mellon London branch is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.
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SOURCE BNY Mellon