BNY Mellon unveils CSD
BNY Mellon is to a launch an issuer central securities depositary (CSD) in a move which has been widely anticipated by market participants.
The Belgium-based CSD received regulatory approval late last year and will offer issuer, settlement and safekeeping services to market participants across Europe and globally. The entity will be headed by Chris Prior-Willeard, who has held a series of senior roles at the bank including executive director at BNY Mellon’s depositary receipts division.
The announcement comes following a series of regulatory initiatives in the European and global markets including T2S, CSD regulation, EMIR and AIFMD.
“BNY Mellon supports current regulatory and infrastructure initiatives aimed at making the securities markets more efficient and safer for all participants. Establishing BNY Mellon CSD reflects our proactive engagement with those initiatives to integrate and unify Europe’s financial markets infrastructure,” said Tim Keaney, vice chairman and CEO of investment services at BNY Mellon.
As a CSD, BNY Mellon will look to leverage linkages to other CSDs around the world to offer clients the benefits of cross-border interoperability, as well as provide services in local markets as a pan-European institution. Clients will also benefit from the speed inherent in settlement internalisation, if both seller and buyer accounts are maintained within the books of the BNY Mellon CSD
“We already provide key elements of the CSD offering to the market – it is just that historically we have done so on a separate basis. This new entity enhances our role in the post-trade space and facilitates an internalisation of the securities value chain, which means our clients will benefit from greater efficiency and reduced risk,” said Prior-Willeard.