BNY Mellon first custodian to go live on ISDA IM offering
05 September 2019 Brussels
Image: Shutterstock
BNY Mellon has become the first custodian to go live on the International Swaps and Derivatives Association (ISDA) Create initial margin (IM) offering, which has recently added a new custody function.
The custody function allows users to complete all documentation required for regulatory IM on a single platform.
ISDA Create is an online solution that automates the process of producing and agreeing on documentation, as well as enabling the capture of valuable structured legal data.
The first module, ISDA Create鈥揑M, launched in January and the service will extend to cover other areas and documentation types in the future.
As part of the new functionality, users will initially be able to access bilateral custody agreements and tripartite account control agreements (ACAs) in digital form on ISDA Create.
ACAs govern the terms of collateral segregation and management between a custodian and two trading counterparties, while bilateral custody agreements govern a pledging client鈥檚 unencumbered assets with a custodian.
The ability to negotiate bilateral custody documents is already available on ISDA Create.
The negotiation of tripartite ACAs will become available later this month.
More than 50 firms have joined ISDA Create for live negotiation of IM documentation since it went live.
Katherine Tew Darras, ISDA鈥檚 general counsel, said: 鈥淪ince launch, ISDA Create users have had the opportunity to negotiate ISDA IM documents online with multiple counterparties simultaneously and they will now have the ability to do the same for their custody agreements too.鈥�
鈥淭his is just the start, and we鈥檙e looking to introduce other ISDA and non-ISDA documentation to ISDA Create.鈥�
Jonathan Spirgel, global head of segregation and liquidity services at BNY Mellon, commented: 鈥淲e are always looking for ways to simplify the non-cleared margin workflow for clients and enable them to service the entire collateral lifecycle with the minimum number of touch points. ISDA Create does precisely that, providing an efficient, all-in-one automated documentation solution for clients that we are very happy to support.鈥�
The custody function allows users to complete all documentation required for regulatory IM on a single platform.
ISDA Create is an online solution that automates the process of producing and agreeing on documentation, as well as enabling the capture of valuable structured legal data.
The first module, ISDA Create鈥揑M, launched in January and the service will extend to cover other areas and documentation types in the future.
As part of the new functionality, users will initially be able to access bilateral custody agreements and tripartite account control agreements (ACAs) in digital form on ISDA Create.
ACAs govern the terms of collateral segregation and management between a custodian and two trading counterparties, while bilateral custody agreements govern a pledging client鈥檚 unencumbered assets with a custodian.
The ability to negotiate bilateral custody documents is already available on ISDA Create.
The negotiation of tripartite ACAs will become available later this month.
More than 50 firms have joined ISDA Create for live negotiation of IM documentation since it went live.
Katherine Tew Darras, ISDA鈥檚 general counsel, said: 鈥淪ince launch, ISDA Create users have had the opportunity to negotiate ISDA IM documents online with multiple counterparties simultaneously and they will now have the ability to do the same for their custody agreements too.鈥�
鈥淭his is just the start, and we鈥檙e looking to introduce other ISDA and non-ISDA documentation to ISDA Create.鈥�
Jonathan Spirgel, global head of segregation and liquidity services at BNY Mellon, commented: 鈥淲e are always looking for ways to simplify the non-cleared margin workflow for clients and enable them to service the entire collateral lifecycle with the minimum number of touch points. ISDA Create does precisely that, providing an efficient, all-in-one automated documentation solution for clients that we are very happy to support.鈥�
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