BNY Mellon Launches New Collateral Optimization Service

BNY Mellon and Pirum announced the launch of a joint optimization service to offer collateral providers margining, risk management and inventory management to drive improved risk-return outcomes. The solution, ECPOConnect, combines BNY Mellon’s collateral management service, ECPO, which optimizes more than $4 trillion in assets globally, with Pirum’s CollateralConnect platform, a SaaS based solution supporting front-to-back cross-asset margin, collateral and inventory. The new service introduces a range of capital efficiency benefits by enabling industry participants to reduce liquidity, exposure and funding costs globally. The platform also addresses firms’ need to centralize collateral management across multiple locations and business lines, including securities lending, repo and derivatives. To support firms in addressing these challenges, ECPOConnect provides firms with the flexibility to utilize their own in-house optimizer or leverage BNY Mellon’s collateral optimizer, ECPO, to support more sophisticated optimization outcomes such as Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR), Risk Weighted Asset (RWA), central counterparty margining, and more. ECPOConnect will offer near real-time connectivity to enable automation and straight-through processing, intraday management of cross-product margin requirements, on-demand execution of collateral coverage and automated mobilization of inventory to meet obligations on a global basis.