Through the use of this new program, participating CME clearing members will be able to achieve straight-through processing, maximize their use of collateral and gain new collateral flexibility. The new program is based on The Bank of New York's advanced collateral management systems and experience in collateral pricing. In addition, CME clearing members will maintain the ability to deposit collateral at other custodians.
"We are delighted to collaborate with CME on this innovative initiative, which is another demonstration of how we are actively expanding our capabilities to support the needs of the global marketplace," said Art Certosimo, senior vice president and head of the broker/dealer services division at The Bank of New York. "What is most exciting is that CME participants will, for the first time, be able to easily substitute collateral to meet changing market needs, in addition to using a broader array of collateral."
"In today's competitive environment, it's more important than ever for market participants to maximize their operational efficiency," said Tim Doar, director of CME Clearing House. "We are pleased to help our clearing members meet this need for operational efficiency with an innovative collateral management solution in collaboration with The Bank of New York."
Chicago Mercantile Exchange Inc. (www.cme.com) is the largest futures exchange in the United States and the second largest exchange in the world for the trading of futures and options on futures. As an international marketplace, CME brings together buyers and sellers on its trading floors and GLOBEXÒ around-the-clock electronic trading platform. CME offers futures contracts and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. The exchange moves about $1.6 billion per day in settlement payments and manages $27.4 billion in collateral deposits. CME is a wholly owned subsidiary of Chicago Mercantile Exchange Holdings Inc.
The Bank of New York is an internationally recognized leader in global investor and issuer services and serves more than 100 markets worldwide, and is also a leader in U.S. government securities clearance services. The Bank also caters to the transaction servicing and financing needs of international banks and brokers through its Global Securities Clearance Division. The Bank's proven ability to meet the needs of borrowers and lenders continues to place it among the leading providers of global collateral management services, as evidenced by the Bank's holdings of over $600 billion in collateralized transactions.
Powered by The Bank of New York's proprietary collateral management system, RepoEdge®, the Bank offers clients a market-leading global platform for their cross-border needs. With real-time links into Sicovam, the Federal Reserve Bank, The Depository Trust Company and Euroclear, The Bank of New York is uniquely positioned to provide integrated servicing of both global fixed income and equity holdings of its broker-dealer clients.
The Bank of New York, founded in 1784 by Alexander Hamilton, is the nation's oldest bank and is the principal subsidiary of The Bank of New York Company, Inc. (NYSE: BK), a financial holding company. With over $80 billion in total assets as of June 30, 2002, the Company provides a complete range of banking and other financial services to corporations and individuals worldwide through its basic businesses, namely, Securities Servicing and Global Payment Services, Corporate Banking, BNY Asset Management and Private Client Services, Retail Banking, and Global Market Services. Additional information on the Company is available at www.bankofny.com
