New York, NY, December 15, 2015 – Brown Brothers Harriman & Co. (BBH) today unveiled the industry's first STP interface to CME Clearing’s Collateral Connect messaging protocol. The BBH Cleared Derivatives Collateral Management platform (BBH-CDCM) enables participants to optimize the customer collateral selection process and efficiently process collateral transfers to and from CME Clearing. This solution expands BBH’s established collateral management services for Futures Commission Merchants (FCMs), asset managers, and other market participants.
Together with BBH’s Settlement Banking service, BBH-CDCM provides FCMs with a comprehensive collateral management outsource solution that supports seamless collateral movements across the broad spectrum of FCMs, central clearing counterparties, and institutional end user market participants.
“This launch is an important next step as we continue to enhance client offerings," said Frank Perrone, Head of the BBH FCM and Derivatives Settlement Banking Group. "Now more than ever, our FCM clients have expressed a need for new solutions to help them navigate new regulations and changing market dynamics, all while being responsive to increased demand for high-quality collateral, reduced costs and improved risk management controls. BBH-CDCM will help our FCM clients remain competitive with cost effective technology options that offer STP, aid in risk management, and accommodate evolving regulatory reporting practices."
Sunil Cutinho, President, CME Clearing, said, “We are pleased to work with BBH to provide greater collateral efficiencies to the marketplace. BBH-CDCM provides access to CME’s Collateral Connect API, which is available for all CME Clearing and CME Clearing Europe clearing firms and their custody banks, supports continued automation of collateral transaction processing, and makes it easier and faster for FCMs to substitute collateral for their clients.”
About Brown Brothers Harriman
BBH is a privately held financial institution that has been a thought leader and solutions provider for nearly 200 years. The Firm serves institutions, businesses, families and individuals in its three business lines: Investor Services, Investment Management, and Private Banking.
BBH’s Investor Services business provides cross-border custody, accounting, administration, and execution services in close to 100 markets for many of the world’s leading asset managers and financial institutions. With $4.2 trillion in assets under custody and administration as of June 30, 2015, BBH is consistently ranked among the world's top global custodians, asset administrators, foreign exchange, and securities lending providers.
About the Brown Brothers Harriman Collateral Management and FCM & Derivatives Settlement Banking Group
BBH is a CME approved settlement bank. In addition to the firm’s comprehensive collateral management offering, BBH provides the listed and OTC cleared derivatives industry with a full range of commercial payment capabilities, as well as custody and other services. Core collateral management services include data capture and management, valuation & calculation, daily call administration, instruction & confirmation, collateral servicing, collateral tracking and reporting, multiple collateral segregation models, and collateral account maintenance.
About CME Group
As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange,energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform, its trading facilities in New York and Chicago, and through its London-based CME Europe derivatives exchange. CME Group also operates one of the world's leading central counterparty clearing providers through CME Clearing and CME Clearing Europe, which offer clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk. Further information about CME Group (NASDAQ: CME) and its products can be found at www.cmegroup.com.