BNY Segregation & Collateral Solutions

Optimize Collateral & Find Efficiencies for Evolving Margin Needs

In today’s evolving financial landscape, rising costs, regulatory changes and growing margin requirements demand smarter collateral strategies. BNY Margin Services helps buy-side and sell-side clients optimize collateral, improve liquidity and comply with global margin regulations through innovative and secure collateral management solutions.

We offer end-to-end solutions

BNY Margin Services provides collateral optimization technology, sophisticated analytics and real-time margin insights. Our solutions include initial and variation margin segregation, independent amount segregation, collateral transformation and financing solutions for hedge funds, pension funds, asset managers and other various financial institutions.

Market leader in regulatory initial margin segregation

Our experts guide clients through the regulatory initial margin requirements, helping them comply with uncleared margin rules (UMR) while maximizing asset efficiency.

Centralized ecosystem for collateral & liquidity

BNY Margin Services connects you to a global ecosystem of collateral management, margin management, financing and securities lending. Our platform provides one place to manage and optimize all your collateral holistically.

Explore Margin Services Solutions and Benefits

Maximize collateral efficiency, meet margin requirements and optimize liquidity with BNY’s Margin Services. Our solutions help clients comply with UMR while enhancing operational performance.

Segregation Services

CollateralONE

Segregation Services: Managing Margin & Regulatory Requirements

BNY’s segregation services help clients navigate margin requirements, optimize collateral and comply with UMR in an evolving derivatives and counterparty risk landscape. Whether managing independent amount (IA), initial margin (IM) and variation margin (VM) or handling repo financing, our solutions help you enhance liquidity, performance and regulatory efficiency while streamlining financing strategies.

By leveraging a triparty agent to perform your collateral management, you gain access to an integrated system that enables secure collateral management for a wide variety of financial transactions. This platform optimizes collateral allocation, enhances liquidity and supports repo and securities financing to help clients meet investment objectives.

Margin Direct provides third-party custody segregation services for all types of posted margin balances to support your derivative trading. This solution allows firms to pledge cash, money funds or securities to counterparties without physically delivering the securities, thus reducing counterparty default risk and supporting trading strategies.

Download Margin Direct Fact Sheet

Asset owners holding fully-paid securities can earn extra passive income by giving permission to their broker-dealer to loan securities through Fully Paid Security Lending* (FPL). BNY offers segregation services for pledgors to facilitate their underlying FPL deals.

Download FPL Fact Sheet

_{*Not all products and services are offered in all countries}

CollateralONE: Centralized Buy-Side Collateral, Financing & Liquidity Solutions

BNY’s CollateralONE expands our buy-side triparty platform, enabling firms to optimize collateral, improve liquidity and streamline financing activities. This ecosystem enhances secure collateral management by centralizing control of your assets for the purposes of margin management and financing activities.

We’ve enhanced our triparty collateral management solutions to support buy-side firms in navigating margin requirements, repo financing and other financing strategies.

Download CollateralONE Factsheet

We have integrated our LiquidityDirect platform onto CollateralONE for buy-side. This gives you access to liquidity options in conjunction with our existing collateral management solutions and allows you to automate and seamlessly use Money Market Funds (MMFs) as collateral on Triparty by transforming excess cash.

Download Fact Sheet

Our collaboration with GLMX introduces real-time execution, notification and settlement enhancements, improving efficiency in managing the collateral on your repo transactions in triparty.

Download GLMX Integration Fact Sheet

Connecting BNY’s LendingLite service with the CollateralONE platform helps clients identify specials and receive incremental revenue from lending without committing to a full-scale securities lending program.

Download LendingLite Integration Fact Sheet

Discover insights on how buy-side firms are adopting triparty collateral management to generate alpha and enhance liquidity strategies.

Access the Finadium Article Here

NAVIGATING THE
REGULATORY LANDSCAPE

We are here to help you on your compliance journey. BNY helps clients navigate UMR by providing solutions for segregating collateral to meet initial margin requirements, along with managing independent amounts and variation margin requirements.

We help clients prepare for the upcoming U.S. Treasury Central Clearing mandate by offering a suite of clearing solutions that can be tailored to fit client needs. Our expertise supports collateral transformation, post-trade monitoring and regulatory reporting, helping to ensure firms meet compliance obligations efficiently.

Understanding Uncleared Margin Rules (UMR)

UMR Segregated Solutions for Compliance & Efficiency

U.S. Treasury Central Clearing Rule & Market Impact

Understanding Uncleared Margin Rules

Download U.S. Brochure

Download International Brochure

Uncleared Margin Rules (UMR) require counterparties in non-cleared over-the-counter (OTC) derivatives transactions to exchange initial margin (IM) and variation margin (VM).

Instigated in 2009 by the G20, these regulations aim to enhance collateral efficiency and mitigate counterparty risk. Over time, UMR have become legally-binding regulations across key global markets, including Australia, Canada, the European Union, Hong Kong, Japan, Korea, Singapore, Switzerland and the United States.

Determining whether you are captured under the rules is based on whether your Average Aggregated Notional Amount (AANA) of non-cleared OTC derivatives exceeds a certain threshold over a certain period of time.

Who is Captured?

If you are captured, the rules will impact the entire lifecycle of your trade, from inception through post-trade settlement. Here, you can learn about the individual steps toward compliance, explained simply across pre-trade, exchange and settlement. Meeting the UMR requirements does not need to be complicated. Here, you can learn about the different options BNY offers to help guide you through this journey.

Download your Journey Map

This online tool provides buy-side firms with legal review on the enforceability of netting and collateral arrangements in key jurisdictions across the globe.

Learn more about SIMM

Read the EU regulation that brought the UMR into force in Europe.

Access the EU Regulation

Find the CFTC rule enforcing the margin requirements in the U.S. here.

Access the Final Rules document

Uncleared Margin Rules Segregated Solutions for Compliance & Efficiency

Navigating UMR doesn’t have to be complex. BNY offers a range of segregation solutions that helps firms meet margin requirements, enhance collateral efficiency and helps ensure regulatory compliance.

Triparty is a low-touch collateral segregation solution. It maximizes the efficiency and flexibility for collateral pledgors by performing many of your day-to-day margin segregation responsibilities. This makes the account structure particularly suitable for portfolio managers running multiple funds with complex allocation requirements.

Download the guide

By leveraging a triparty agent to perform your collateral management you gain access to an integrated system that enables secure collateral management for a wide variety of financial transactions. This platform optimizes collateral allocation, enhances liquidity, and supports repo and securities financing to help clients meet investment objectives.

Download the guide

Our third-party margin segregation model allows you to take a more direct role in the management of your collateral and has traditionally proven to be a more popular choice for institutions that have fewer trading relationships. The platform fully supports the segregation (pledge) of your collateral when you are posting to your counterparty.

Download the guide

Some in-scope UMR institutions are required to calculate their own Standard Initial Margin Model. BNY provides a service to perform this calculation on your behalf.

U.S. Treasury Central Clearing rule & Market Impact

The U.S. Securities and Exchange Commission central clearing rule is set to transform the U.S. Treasury market, requiring market participants to reorganize their trading and infrastructure. BNY provides solutions to help clients navigate clearing regulations, optimize repo transactions and enhance collateral management.

BNY has played a central role in building the safety and liquidity of the U.S. Treasury market since its inception, having first financed the U.S. government in 1789. Today, BNY continues to hold a unique position in the world’s most important bond market and provides a solution for every stage of the central clearing lifecycle.

Learn more about Central Clearing

As bilateral U.S. Treasury repo trades move to a centrally cleared model and the requirements to post margin and collateral increase, market participants will seek new ways to optimize their collateral across transactions. With BNY’s CollateralONE offering, buy-side clients can leverage state-of-the-art technology to manage their collateral, while reducing complex back-office processes and ensuring the efficient use of their collateral to optimize liquidity.

Our Insights

Views | Clearing & Settlement

Reassembly Revisited: The path to central clearing

Explore how the U.S. Treasury central clearing rule affects global market participants. BNY provides expert guidance on complying with the SEC mandate.

MARGIN SERVICES

Ready to grow your business?

We offer end-to-end solutions

Market leader in regulatory initial margin segregation

Centralized ecosystem for collateral & liquidity

Segregation Services: Managing Margin & Regulatory Requirements

CollateralONE: Centralized Buy-Side Collateral, Financing & Liquidity Solutions

Understanding Uncleared Margin Rules

Who is captured?

TRILLION IN 2016

TRILLION IN 2017

TRILLION IN 2018

BILLION IN 2019

BILLION IN 2020

BILLION IN 2021

BILLION IN 2022

Uncleared Margin Rules Segregated Solutions for Compliance & Efficiency

U.S. Treasury Central Clearing rule & Market Impact

Our Insights

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