BNY Mellon Partners with AcadiaSoft to Complete Non-Cleared Derivatives Workflow for Buy-Side

Custodian bank giant BNY Mellon has announced that it has introduced the MarginConnect that is fully integrated with AcadiaSoft's industry-standard messaging platform to help buy-side investment managers take full control over the collateralization of non-cleared derivatives.

Utilizing MarginConnect, managers who wish to retain control over the collateralization of their non-cleared derivatives activity can now do so, leveraging a direct connection between AcadiaSoft and BNY Mellon.

Previously, the vast majority of buy-side entities do not have a SWIFT network membership, meaning that they have had to either build and maintain their own connectivity to their custodian or outsource the messaging component instructing the actual movement of collateral to a SWIFT member.

MarginConnect addresses this gap in the workflow by enabling managers to bypass the costs associated with the SWIFT network by sending messages via BNY Mellon's MarginConnect offering.

Utilizing this link, clients are able to generate collateral instructions within the AcadiaSoft ecosystem without having to separately create and deliver SWIFT messages or log into their BNY Mellon triparty or third-party collateral account.

In May 2019, BNY Mellon and AcadiaSoft unveiled a comprehensive collateral administration service that provides a fully outsourced solution for buy-side firms seeking to comply with the non-cleared margin rules. MarginConnect complements that end-to-end offering with a cost-effective alternative, enabling those market participants with the capability to manage their own collateral processes to conduct their own margin calculation and messaging.