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Pirum has integrated BNY Mellon’s digitised tri-party collateral schedules into its CollateralConnect solution.
This collaboration will integrate BNY Mellon’s automated delivery service and its tri-party schedule and collateral eligibility data into Pirum’s collateral eligibility and optimisation tools, enabling smarter collateral decisions through application of algo-based portfolio optimisation tools, according to the two companies.
Through its CollateralConnect service, Pirum offers a real-time centralised view of margin obligations, digitised collateral eligibility and global inventory management that aims to optimise collateral mobilisation and allocation across locations and product areas, including securities lending, repo and derivatives.
In addition to providing collateral eligibility controls, the service offers collateral allocation compliance with regulatory obligations such as the UK Financial Conduct Authority's Client Asset Sourcebook rules (CASS), the EU Markets in Financial Instruments Directive and the US Dodd Frank Act.
Pirum head of client innovation Todd Crowther says: “The addition of BNY Mellon tri-party collateral schedules and digitised eligibility to CollateralConnect is an important milestone both for collateral receivers and providers, especially where firms require an automated centralised schedule repository, enabling efficient collateral management across all their margin activities.”
BNY Mellon’s digital business leader within clearance and collateral management Victor O’Laughlen says: “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 digitised tri-party collateral schedules and position eligibility API data is available to our mutual clients, empowering them to optimise their use of their securities inventory.”
BNY Mellon’s Future of Collateral initiative is designed to promote an optimised and harmonised collateral ecosystem, enabling clients to deploy collateral assets located around the world within one unified collateral environment.
