BNY Mellon and Pirum, a fintech specialising in trading markets, have launched a joint optimisation service to offer collateral providers margining, risk management and inventory management to drive improved risk/return outcomes. The solution, ECPOConnect, combines BNY Mellon’s collateral management service, ECPO, which optimises more than USD4trn in assets globally, with Pirum’s CollateralConnect platform, a SaaS based solution supporting front-to-back cross-asset margin, collateral and inventory management and optimisation. ECPOConnect will offer near real-time connectivity to enable automation and STP, intraday management of cross-product margin requirements, on-demand execution of collateral coverage, and automated mobilisation of inventory to meet obligations on a global basis.
The new service introduces a range of capital efficiency benefits by enabling industry participants to reduce liquidity, exposure and funding costs globally. The platform also addresses the need to centralise collateral management across multiple locations and business lines, including securities lending, repo and derivatives. ECPOConnect provides firms with the flexibility to utilise their own in-house optimiser or leverage ECPO to support more sophisticated optimisation outcomes such as Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR), Risk Weighted Asset (RWA), central counterparty margining, and more.