BNY Mellon Expands Securities Lending Business

Terry Flanagan

BNY Mellon and CIBC Mellon, its Canadian joint venture with Canadian Imperial Bank of Commerce, have announced the integration of their respective securities lending desks. The integration establishes BNY Mellon’s Securities Finance business as one of the largest providers of securities lending services in the world, with trading offices in New York, Pittsburgh Toronto, London and Hong Kong.

“As an enhancement to BNY Mellon’s global leadership position within the securities finance industry, this integration builds on our respective strengths, broadens our capabilities in the markets we serve and provides our clients with an ever-increasing level of trading expertise and even deeper coverage,” said James Slater, global head of securities finance at BNY Mellon.

Part of BNY Mellon’s Global Collateral Services division, the Securities Finance business encompasses more than $2.5 trillion in lendable assets and outstanding loan balances of approximately $250 billion.
CIBC Mellon’s program represents more than 120 clients with approximately CAD$500 billion in lendable assets and CAD$60 billion on loan, making it the largest such securities lending program in Canada.

“The alignment of our trading desk teams represents the culmination of years of working together as partners in the CIBC Mellon joint venture,” said Rob Ferguson, senior vice president, capital markets at CIBC Mellon. “This integration enhances client service across both organizations, with the significant resources and scale of two globally recognized securities lending programs. The BNY Mellon and CIBC Mellon project teams have worked closely to ensure a seamless integration for our respective clients.”

Following the integration, five geographic centers of excellence in trading and service delivery will provide a global presence. BNY Mellon’s global markets expertise will be available to CIBC Mellon clients providing new opportunities for incremental revenue in markets around the world, while CIBC Mellon’s expertise in the Canadian market will be available to BNY Mellon clients, providing the potential for improved returns on Canadian securities.

In addition, a full suite of daily client reporting with multiple delivery options now available to CIBC Mellon clients will provide reporting integration with Workbench, BNY Mellon’s client information delivery platform.

BNY Mellon continues to enhance how it supports the fast-evolving and ever more complex needs of institutional investors globally across the transaction lifecycle through its Investment Services division.

Investment Services brings together a broad range of activities – global custody and related services; broker-dealer services; collateral and securities financing solutions; alternative investment services; corporate trust; depositary receipt; clearing; and global payment/working capital solutions – to help clients in transforming their business models and to provide them with a broader range of multi-faceted solutions delivered in a more seamless fashion.

CIBC Mellon provides asset servicing, including custody, multicurrency accounting, fund administration, unitholder recordkeeping, pension services and securities lending services for Canadian banks, pension funds, investment funds, corporations, governments, insurance companies, foreign insurance trusts, foundations and global financial institutions whose clients invest in Canada.

BNY Mellon’s Global Collateral Services business offers a comprehensive suite of capabilities to help clients address their collateral, liquidity and securities financing needs. BNY Mellon currently services $2 trillion in tri-party repo collateral globally and approximately $100 billion in assets through its Liquidity DIRECT investment portal, and operates one of the industry’s largest securities lending programs, with $2.5 trillion in lendable assets.

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