BNY Mellon’s institutional clients now have the ability to invest cash in cleared repo through LiquidityDirectSM, it's short-end investment portal.
The bank says the addition of cleared repo to LiquidityDirectSM means it can provide a secure, centrally cleared solution that offers counterparty diversity and potentially enhances yields.
Since 2017 cleared repo through the Fixed Income Clearing Corporation (FICC) has emerged as an important short-term investment option for liquidity providers, especially after changes in entry requirements increased the community of investors eligible to utilise the product.
BNY Mellon’s head of principal securities finance Mark Haas says: “We have attained a leading position in sponsored repo since the product was rolled out, and we see increased interest and enrollment from entities that are common users of treasury workstations such as municipalities, corporates and insurance companies.
“The ability to transact via LiquidityDirect is the latest in a series of cleared repo enhancements we've introduced to benefit clients, such as dynamic margining, term trading and expanding into additional jurisdictions.”
The bank’s head of liquidity services George Maganas says: “LiquidityDirect is one of the world's largest digital portals for investing in money market funds. With the addition of cleared repo – and with other vehicles still to come – we are demonstrating our ambition to build the venue into the market's leading short-end investment platform.”
Launched in 1997, the LiquidityDirect portal allows for investing in all types of money market funds, including treasury funds, government funds, prime funds, taxable and tax-exempt funds, as well as offshore money funds.
As of the close of 2020, the platform supported almost $9 trillion in transaction flow annually for more than 700 of the world's largest corporations and institutional investors.
