LONDON, May 31, 2011 — BNY Mellon, the global leader in investment management and investment servicing, announced today that it is providing derivatives collateral management services to Sjunde AP-fonden (AP7) the Swedish state pension fund, which has over euro 8.5bn under management.

Services are being provided via DM Edge, BNY Mellon's comprehensive derivatives margin management platform. This allows customisation of the margin and collateral process which incorporates the processing, reinvestment and valuation activities associated with posting and receiving collateral for OTC derivative transactions.

BNY Mellon is using DM Edge in conjunction with its Triparty collateral management and Money Funds platforms to support AP7's equity OTC derivatives trading, assisting with raising cash as collateral, reinvesting cash collateral and calculating margin call amounts.  This is the first time that three of the platforms have been combined, offering a collateral management service which is tailored to the fund's complex requirements.

Andrew Demko, EMEA business manager for Broker Dealer Services at BNY Mellon said: "BNY Mellon has created a solution for AP7 which enables it to maximise the use of its equity collateral. The pension fund has previously found that many market participants will not accept equity as collateral under ISDA agreements. Our solution enables long equity positions to be turned into cash at short notice for use as margin, facilitating the business and avoiding extra costs."

Svante Linder, Chief Operating Officer at AP7, said: "BNY Mellon has helped us solve the problem of collateralising OTC Derivatives when using an equity based portfolio.  The market is not favourable to using equities as collateral at the moment and working with BNY Mellon on a combined solution has helped us to overcome operational and legal hurdles."

BNY Mellon is the second largest provider of outsourced derivatives collateral management services globally.  It is the leading provider of tri-party collateral management services, servicing more than $1.8 trillion in tri-party balances worldwide.  BNY Mellon's collateral management services ranked #1 in 2009 by Global Custodian and International Securities Finance magazine.

BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team. It has $25.5 trillion in assets under custody and administration and $1.2 trillion in assets under management, services $11.9 trillion in outstanding debt and processes global payments averaging $1.7 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available at www.bnymellon.com.

This press release is issued by The Bank of New York Mellon to members of the financial press and media.  All information and figures source The Bank of New York Mellon as at 31 March 2011 unless otherwise stated. The Bank of New York Mellon, London Branch, registered in England and Wales with FC005522 and BR000818. Branch office: One Canada Square, London E14 5AL
Authorised and regulated in the UK by the Financial Services Authority.