UK - The Invensys Pension Scheme has appointed BNY Mellon to provide it with derivatives collateral management services.
The firm will use its DM Edge platform to manage the scheme's the administrative, processing, reinvestment and valuation activities associated with posting and receiving collateral for over-the-counter derivative transactions.
IPS and BNY Mellon added they had joined forces to develop a single collateral management platform where all of IPS's aggregate collateral requirements across asset managers and bank counterparts would be managed by BNY Mellon.
IPS chief executive Robin Claessens said: "IPS was seeking a robust and experienced partner to build a unique collateral management platform that is critical for a pension scheme's overall risk management framework.
"This framework improves counterparty risk management, allows for a more efficient use of the scheme's collateral base, allows the scheme to benefit from economies of scale, and facilitates a more efficient use of certain securities' liquidity through potential REPO/Stock Loan programmes."
BNY Mellon senior executive vice-president and chief executive officer of broker-dealer services and alternative investment services Art Certosimo said: "Pension schemes are looking to find more cost effective solutions for collateral management and the DM Edge platform meets this need."
Industry experts are calling on the government to act quickly on new pensions dashboard legislation. The DWP is looking at how to do it amid Brexit constraints, writes Kim Kaveh.
An interactive and hands-free technology that allows savers to track how much they have invested into their retirement pots has been launched by Smart Pension.
The Lighthouse Pensions Trust has recorded an 84% surge in the number of employers signed up to its auto-enrolment (AE) provision.
Melrose Industries's UK defined benefit (DB) schemes had a £5.5m combined deficit at the end of 2016, its annual results have revealed.