NEW YORK, June 28 /PRNewswire-FirstCall/ -- In response to growing demand by hedge funds for independent safekeeping of their assets, BNY Mellon has been chosen by Goldman Sachs International (GSI) to provide a segregated sub-custody service to GSI's prime brokerage clients through Montague Place Custody Services ("MPCS").
Through the service, MPCS will utilize BNY Mellon to hold and safekeep their clients' assets in certain key markets while continuing to maintain GSI's prime brokerage and trading relationships.
"Prime brokers are looking to trusted providers like BNY Mellon to deliver a seamless offering that will safeguard their clients' assets and meet their needs in a changing market and regulatory environment," said James Malgieri, CEO of BNY Mellon Broker-Dealer Services. "This is in direct response to hedge funds that are increasingly seeking to diversify counterparty risk while continuing to deal directly with their prime brokers."
BNY Mellon Broker-Dealer Services is the leading provider of tri-party collateral management services, servicing more than $1.5 trillion in tri-party balances worldwide. It also clears fixed income and equity transactions in more than 100 markets globally and is the leading clearing agent for U.S. government securities.
Goldman Sachs International (GSI) has established Montague Place Custody Services (MPCS), an independent entity that is authorized and regulated by the FSA. MPCS provides for the safekeeping and custody of client securities and cash and has been designed to survive a GSI insolvency. MPCS has independent office space, technology and general infrastructure support as well as employees solely dedicated to the business in the event of a GSI insolvency. MPCS holds its client securities and cash with a comprehensive global network of sub-custodians and agent banks, including BNY Mellon.
BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $22.4 trillion in assets under custody and administration, $1.1 trillion in assets under management, services $11.8 trillion in outstanding debt and processes global payments averaging $1.5 trillion per day. Additional information is available at www.bnymellon.com.
SOURCE BNY Mellon