The Bank of New York Tops $1.5 Trillion in Servicing of Tri-Party Balances Worldwide
International Balances Nearly Double in Last Two YearsNEW YORK, May 10, 2007 -- The Bank of New York, a global leader in securities servicing, has passed the $1.5 trillion mark in its daily servicing of tri-party balances worldwide, making it the first tri-party collateral management provider to reach that milestone.
In the past two years, the Bank has experienced a 50% increase in tri-party balances globally, with rapid growth in the international markets in which balances grew from $154 billion in 2005 to nearly $300 billion today. The Bank posted strong gains in the United States as well, with balances growing from $827 billion in 2005 to $1.25 trillion currently.
"We have witnessed consistently strong demand from both broker dealers and institutional investors who value the administrative, risk management and cost advantages that our tri-party collateral management services deliver," said Art Certosimo, executive vice president and head of broker dealer services at The Bank of New York. "We expect significant growth in our business moving forward as international demand, especially in Asia, continues to increase and we introduce innovative services that meet clients' emerging needs, such as our new derivatives margin management service and our U.S. whole loan tri-party offering."
In a global collateral management transaction, the tri-party custodian acts as an intermediary between the collateral provider and the secured party to ensure proper collateralization throughout the term of the transaction. As tri-party agent, The Bank of New York maintains cash and securities accounts for both parties, verifies collateral eligibility, marks to market securities pledged as collateral, processes income and provides daily reporting to both parties.
The Bank recently introduced a derivatives margin management service that facilitates for clients the administrative, processing, reinvestment and valuation activities associated with posting and receiving collateral in connection with over-the-counter (OTC) derivatives trades.
The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, asset management, and wealth management. The Company's extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.
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