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BNY Mellon to launch CSD
07 January 2013
The bank wants to enhance its role in the post-trade market
BNY Mellon has been given the green light from regulators to introduce a new central securities depository (CSD) that will provide issuer, settlement and safekeeping services.
According to the bank, the new entity will give market participants enhanced interoperability and efficiency in the global post-trade environment.
According to Tim Keaney, vice-chairman and CEO of investment services at BNY Mellon, the launch is a “natural evolution” of its business and reflects the bank’s support of regulatory initiatives that aim to make the securities markets safer and more efficient.
BNY Mellon CSD will be regulated by the National Bank of Belgium and will be run by Chris Prior-Willeard who has been appointed CEO. He has held several executive positions at BNY Mellon since joining the bank in 2006.
“In establishing the BNY Mellon CSD, we are redefining what it means to be a global custodian and how our industry will provide investment services,” said Prior-Willeard.
He added that the bank will be able to help clients meet new regulatory requirements such as the European Market Infrastructure Regulation (Emir) by allowing them to have access to integrated services across the entire securities value chain.
BNY Mellon’s CSD will look to leverage linkages with other CSDs around the globe as part of plans to offer clients cross-border interoperability.