BNY Integrates CollateralOne and LiquidityDirect Platforms

BNY has completed the integration of its buy-side CollateralOne platform with its short-term investment platform LiquidityDirect as it seeks to transform assets to higher-quality balance collateral. According to a story in The Trade news, the move is set to allow clients to automate the use of Money Market Funds (MMF) in triparty transactions, specifically by converting excess cash into collateral against the trade. In addition, BNY confirmed that the integration will optimize MMF’s “to hold against their [clients]  triparty deals and increase yield while allowing more flexibility to consider a broader pool of asset types to use as collateral” Further, the combination of the CollateralOne and LiquidityDirect platforms will work to centralize how users manage their collateral and liquidity within BNY’s offerings, serving to streamline inventory and reduce funding costs. CollateralOne was unveiled in November last year, when BNY combined its LendingLiteSM service with a new collateral offering, creating a buy-side platform with an expanded triparty service. The launch provided BNY clients with the option of opportunistic specials-only lending and a holistic view of all their assets, liabilities and opportunities in one place.