CITIC CSLA has become the first Chinese broker to use BNY Mellon’s tri-party platform, Stock Connect.
The Stock Connect service allows China A-Shares to be used as collateral.
BNY Mellon was the first tri-party agent to provide collateral services for securities settled through Hong Kong Stock Connect which was launched six years ago, supporting growing cross-border trade volumes in and out of China.
Since then the solution, which is designed to reduce clients’ collateral costs, has enabled clients to post Stock Connect assets in non-title transfer pledge arrangements.
Magdalene Tay, Asia Pacific custody product manager for asset servicing at BNY Mellon, says: “Stock Connect enables enhanced optimisation of assets within [a client’s] global collateral portfolios, helping institutions maximise their balance sheet.
“Clients utilising tri-party collateral services reduce operational risks through the centralisation of post-trade collateral management functions.”
