Margin Services
All your collateral, financing and liquidity in one place
What we do
OUR VALUE
In today’s evolving financial landscape, rising costs, regulatory changes and growing margin requirements demand smarter collateral strategies. Our 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.
How we help
SOLUTION HIGHLIGHTS
01
End-to-End Solutions
We provide collateral optimization technology, powerful 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 financial institutions.
02
Market Leader in Regulatory Initial Margin Segregation
Our experts can guide clients through the regulatory initial margin requirements, helping them comply with uncleared margin rules (UMR) while maximizing asset efficiency.
03
Centralized Ecosystem for Collateral & Liquidity
Our global platform provides one place to manage and optimize all your collateral, connecting you to an ecosystem of collateral management, margin management and securities financing.
What we offer
EXPLORE MARGIN SERVICES
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: Managing Margin & Regulatory Requirements
CollateralONE: Centralized Buy-Side Collateral, Financing & Liquidity Solutions
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Segregation Services: Managing Margin & Regulatory Requirements
CollateralONE: Centralized Buy-Side Collateral, Financing & Liquidity Solutions
Our 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, initial margin and variation margin or handling repo financing, our solutions help you enhance liquidity, performance and regulatory efficiency while streamlining financing strategies.
Leverage our tri-party agent for your margin management and gain access to an integrated system that faciliates secure collateral management for a variety of financial transactions. This platform is designed to optimize collateral allocation, enhance liquidity and supports repo and securities financing to help clients meet their investment objectives.
Margin Direct provides third-party custody segregation services for all posted margin balances, supporting your derivative trading. It allows firms to pledge cash, money funds or securities to counterparties without physically delivering the securities, thus helping to reduce counterparty default risk and supporting trading strategies.
Asset owners holding fully-paid securities have the potential opportunity to earn passive income by giving permission to their broker-dealer to loan securities through Fully Paid Security Lending* (FPL). We offer segregation services for pledgors to facilitate their underlying FPL deals.
*Not all products and services are offered in all countries
CollateralONE expands our buy-side triparty platform, helping firms 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 tri-party collateral management solutions to support buy-side firms in navigating margin requirements, repo financing and other financing strategies.
We have integrated our LiquidityDirectSM 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 use Money Market Funds (MMFs) as collateral on tri-party by transforming excess cash.
Our collaboration with GLMX introduces real-time execution, notification and settlement enhancements, helping to improve efficiency in managing the collateral on your repo transactions in triparty.
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.
CollateralONE is now integrated with Borrow+, creating a seamless securities financing ecosystem. This new capability offers the option to connect BNY’s Borrow+ securities financing solution to your Triparty ecosystem, broadening your liquidity options across both long and short financing strategies.
What you gain
NAVIGATING THE REGULATORY LANDSCAPE
We are here to help you on your compliance journey. Our expertise supports collateral transformation, post-trade monitoring and regulatory reporting, helping firms meet compliance obligations efficiently.
Navigate Uncleared Margin Rules (UMR)
We help clients navigate UMR by providing solutions for segregating collateral designed to meet initial margin requirements, along with managing independent amounts and variation margin requirements.
Central Clearing Mandate
We can help you prepare for the U.S. Treasury Central Clearing mandate by providing a customizable suite of clearing solutions tailored to your needs.
Understanding Uncleared Margin Rules
Uncleared Margin Rules Segregated Solutions for Compliance & Efficiency
U.S. Treasury Central Clearing Rule & Market Impact
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Understanding Uncleared Margin Rules
Uncleared Margin Rules Segregated Solutions for Compliance & Efficiency
U.S. Treasury Central Clearing Rule & Market Impact
UMR requires 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 and binding regulations across key global markets, including Australia, Canada, the European Union, Hong Kong, Japan, Korea, Singapore, Switzerland and the U.S.
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. Thresholds and calculation periods may vary by jurisdiction.
If you are captured, the rules will impact the entire lifecycle of your trade, from inception through post-trade settlement. We provide clear explanations of the individual steps toward compliance across pre-trade, exchange and settlement for your job function.
This online tool provides buy-side firms with review on the enforceability of netting and collateral arrangements in key jurisdictions across the globe.
Read the EU regulation that brought the UMR into force in Europe.
Read the CFTC rule enforcing the margin requirements in the U.S.
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 achieve regulatory compliance.
Tri-party 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.
By leveraging a triparty agent to perform your collateral management, you gain access to an integrated system that faciliates secure collateral management for a wide variety of financial transactions. This platform helps optimize collateral allocation, enhances liquidity and supports repo and securities financing to help clients meet investment objectives.
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.
Some in-scope UMR institutions are required to calculate their own SIMM. BNY provides a service to perform this calculation on your behalf.
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 across the stages of the central clearing lifecycle.
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 the efficient use of their collateral to help optimize liquidity.
READY TO TALK ABOUT
WHAT'S NEXT?
Learn more about our platforms and solutions