In addition to the intraday credit reduction, BNY Mellon introduced enhancements that provide meaningful benefits to its clients and highlight the company's service quality and technology leadership.

This includes automated deal matching which captures instructions independently from repo counterparties and ensures all parameters of a tri-party repo trade match prior to settlement, auto collateral exchange which allows tri-party repo trade collateral to automatically substitute securities for cash.

Other improvements include rolled trade functionality, rebalancing capabilities, a settlement algorithm that powers the simultaneous exchange of cash and securities to settle maturing and new repo trades, and a web-based, real time credit line monitoring dashboard that dealers use to monitor their actual or projected intraday credit usage.

"In addition to properly aligning our technology and business resources, keys to the program's success included the systematic phasing in of incremental solutions, creating close partnerships with clients and industry participants in defining and confirming requirements, communicating actively with all stakeholders throughout the process, and delivering value-added capabilities that drove adoption," said Kevin Fedigan, chief information officer of broker-dealer services at BNY Mellon.

BNY Mellon says it will next turn its attention to working closely with market participants to improve the process for settling interbank general collateral finance repo trades.