The Bank of New York Mellon has introduced Derivatives360, an integrated investment servicing lifecycle solution to help clients efficiently execute and manage derivatives transactions. According to the bank, Derivatives360’s flexible modular design allows clients to select some or all of the components offered by the new platform, allowing them to focus resources and management time on their core activities.
Tim Keaney, chairman of Europe and head of global client management at Bank of New York Mellon and co-CEO of BNY Mellon Asset Servicing, says: “Derivatives360 leverages the Bank of New York Mellon’s existing expertise, sophistication and experience around derivatives processing and settlement to provide end to end support and transparency, before, during and after a trade. As such it reinforces our longstanding commitment to providing our clients with simple solutions for complex problems.”
Clients are today looking to outsource derivative functions historically handled in-house for a number of reasons, including credit considerations, product complexity, the high investment costs associated with specialist systems, a shortage of high calibre staff, stronger regulation and the wider industry drive towards standardisation.
Whether clients are using derivatives as a hedging tool or as a separate investment strategy, Derivatives360 offers a broad array of services for issuers and investors around the execution and processing of derivatives. These include: trading and execution, middle and back office outsourcing, collateral management, accounting and recordkeeping, reporting and performance and risk analytics.
Derivatives360 also encompasses the following outsourced services: OTC trade affirmation and confirmation, trade settlement, independent valuation, counterparty and investment manager reconciliation, collateral management, lifecycle event management and futures margin management.