The Bank of New York Mellon Corporation (BNY) (NYSE: BK) has piloted the “first” intraday repo trade settled through its triparty infrastructure.
The USD-denominated pilot transaction, which “took place in February, saw UBS borrowing cash from Swiss Re while delivering collateral via BNY’s global collateral platform.”
The success of this pilot demonstrates the ability for market participants to instruct a same-day repo with “a specified start and end time through BNY’s triparty infrastructure, whereby the allocation and return of eligible collateral is settled and matured intraday against payment.”
Additionally, market participants can access intraday repo “through their existing triparty legal documentation on the BNY platform.”
Gesa Johannsen, Executive Platform Owner – Global Collateral, BNY, said:
“We are continuously evolving BNY’s platform infrastructure to unlock new trading patterns for the market. Complementing our new early morning maturity option for triparty transactions in the U.S., our intraday triparty repo solution is an important step towards providing more flexible liquidity management possibilities to our clients, enabling them to more efficiently fund their day-to-day operations.”
Leveraging its existing collateral platform infrastructure, BNY’s intraday triparty repo solution enables market participants, “like UBS, to source liquidity for specified periods of time without the need to borrow for a full 24-hour period.”
For lenders such as Swiss Re, the solution provides “an opportunity to generate additional income on excess, idle cash.”
In April, Banco Santander and Rabobank also “completed an intraday triparty repo transaction, executing trades in both directions — borrowing and lending – through BNY’s collateral platform.”
Settling both legs of the repo trade intraday “provided the parties with enhanced flexibility, streamlined collateral management, and improved short-term funding efficiency.”
As triparty agent, BNY provided the infrastructure, “collateral servicing, and settlement support required to enable this trade.”
As noted in the update, BNY is a global financial services company that helps make money “work for the world – managing it, moving it, and keeping it safe. For 240 years, BNY has partnered alongside clients, putting its expertise and platforms to work to help them achieve their ambitions.”
Today, BNY helps over “90% of Fortune 100 companies and nearly all the top 100 banks globally to access the money they need.”
BNY supports governments in funding local projects and “works with over 90% of the top 100 pension plans to safeguard investments for millions of individuals, and so much more.”
As of December 31, 2024, BNY oversees “$52.1 trillion in assets under custody and/or administration and $2.0 trillion in assets under management.”
As previously reported, BNY is the corporate brand of The Bank of New York Mellon Corporation.
Headquartered in New York City, BNY notes that it employs over 50,000 people globally.