LONDON, September 5, 2014 – BNY Mellon, a global leader in investment management and investment services, has today announced CME Clearing Europe as the first external client of BNY Mellon CSD SA/NV, the company’s Belgium-based central securities depositary.

CME Clearing Europe, CME Group's European clearing house, settled its first securities transaction through BNY Mellon CSD in late August.

Article 47.3 of the European Market Infrastructure Regulation (EMIR) requires that margin collateral for a central counterparty (CCP) must be segregated and held by the operator of a recognised Securities Settlement System (SSS), such as BNY Mellon CSD.

With its full segregation model, CME Clearing Europe has placed a specific focus on the needs of the German funds industry in respect of the protection of collateral. BNY Mellon CSD is committed to support such segregation models and to leverage BNY Mellon's expertise in the German market to provide such solutions.

Lee Betsill, CEO at CME Clearing Europe, said: “Our relationship with BNY Mellon CSD is important to us because it means that clients can benefit from an additional option in respect of CME Clearing Europe’s collateral protection models, which will in due course include our new fully segregated account structure. This structure ensures that collateral held at a central securities depository is fully segregated at the individual client level, which provides an enhanced level of collateral protection for all scenarios in the event of a bankruptcy.”

Chris Prior-Willeard, CEO of BNY Mellon CSD SA/NV, said: “Our appointment by CME Clearing Europe is a key milestone in the ongoing development of our CSD proposition and demonstrates the market recognises the value and innovation we bring to the post-trade infrastructure space. We are committed to establishing further links to support CCPs in managing and accessing a wider range of collateral, as well as offering settlement for all market participants.”

As part of its ongoing build-out programme following its establishment as an issuer CSD in December 2012, BNY Mellon CSD established a link with Euroclear Bank in June 2014 as the first step to its transition to investor CSD status. In March of this year, BNY Mellon CSD was accepted as a recognised system for settling transactions in securities listed on the two markets operated by the Luxembourg Stock Exchange.

Established in December 2012, BNY Mellon CSD SA/NV provides issuer, settlement and safekeeping services for the benefit of all market participants across Europe and the wider global marketplace. Additional information is available on http://www.bnymelloncsd.com/

Global Collateral Services offers a comprehensive suite of capabilities to help our clients address their collateral, liquidity and securities financing needs. As they face evolving global regulations and rapidly changing market requirements, clients can leverage BNY Mellon’s products and services to better manage counterparty and market risk in their collateral transactions, engage in more investment opportunities to help maximize their investment returns and access new financing alternatives.  BNY Mellon currently services $2 trillion in global collateral (including tri-party repo collateral worldwide) and approximately $100 billion in assets through its Liquidity DIRECT ^SM investment portal, and operates one of the industry's largest securities lending programs, with $3 trillion in lendable assets.

BNY Mellon has been serving clients in Germany since 1931. The company opened its first office in Frankfurt in 1972. Following its acquisitions of BHF Asset Servicing and Frankfurter Service KAG in 2010 and Meriten Investment Management in 2012, the company now has more than 650 employees in Germany. In addition to asset servicing, depotbanking, fund administration and asset management, BNY Mellon is active in Germany in the areas of corporate trust, treasury services, collateral management, depository receipts and client management.  It has over 200 institutional relationships in Germany, including more than 20 DAX-listed corporations, and offers regional coverage for 14 countries in the German speaking and Central Eastern and South Eastern European region. For more information, see http://www.bnymellon.de/.

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of June 30, 2014, BNY Mellon had $28.5 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com or follow us on Twitter @BNYMellon.

Contact:
Tim Steele
+44 20 7163 5850
tim.steele@bnymellon.com