LONDON, July 20, 2022 /PRNewswire/ -- BNY Mellon and
Goldman Sachs International ("Goldman Sachs") have successfully
completed the industry's first agency securities lending
transactions using the HQLAX Distributed Ledger
Technology (DLT) platform.
As part of the combined series of 35-day term transactions with
a total size in the hundreds of millions of US dollars,
HQLAX created ISIN-level securities trackers called
Digital Collateral Records (DCRs) from loaned securities it
received from BNY Mellon, giving Goldman Sachs a digital copy of
those trades.
The ISIN-level DCRs are the first of their kind, representing
specific ISIN quantities held in custody. Those records will enable
holders and agents to transfer ownership of any security on the
HQLAX distributed ledger, without the need for
conventional settlement mechanisms.
It also paves the way for eligible clients to reuse ISIN-level
DCRs in onward collateral obligations at one or more Triparty
Agents.
"We are delighted to be partnering with HQLAX on this
milestone. The potential to enhance collateral and inventory
mobility is very exciting and something that has been a key
industry focus for a number of years," said Bill Kelly, Head of Securities Finance at BNY
Mellon.
"This represents another key step in our adoption of DLT to
facilitate traditional financial activity in order to unlock
efficiency gains across market participants. We are looking forward
to growing volumes with our counterparts over the coming months,"
said Amar Amlani, Head of EMEA
Digital Assets at Goldman Sachs.
"Agency securities lending activity represents the single
biggest source of liquidity for the collateral upgrade market, so
welcoming BNY Mellon as a liquidity provider to our platform
represents a tipping point for recurring, scalable volumes on our
platform," commented Guido Stroemer,
co-founder and CEO of HQLAX. "We are very proud to
collaborate closely with strategic partners like Goldman Sachs and
BNY Mellon to develop and implement innovative industry solutions
like this one."
About BNY Mellon
BNY Mellon is a global investments
company dedicated to helping its clients manage and service their
financial assets throughout the investment lifecycle. Whether
providing financial services for institutions, corporations or
individual investors, BNY Mellon delivers informed investment and
wealth management and investment services in 35 countries. As of
June 30, 2022, BNY Mellon had
$43.0 trillion in assets under
custody and/or administration, and $1.9
trillion in assets under management. BNY Mellon can act as a
single point of contact for clients looking to create, trade, hold,
manage, service, distribute or restructure investments. BNY Mellon
is the corporate brand of The Bank of New York Mellon Corporation
(NYSE: BK). Additional information is available on
www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our
newsroom at www.bnymellon.com/newsroom for the latest company
news.
About Goldman Sachs
Goldman Sachs is a leading global
financial institution that delivers a broad range of financial
services across investment banking, securities, investment
management and consumer banking to a large and diversified client
base that includes corporations, financial institutions,
governments and individuals. Founded in 1869, the firm is
headquartered in New York and
maintains offices in all major financial centers around the
world.
About HQLAX
HQLAX is a
financial technology innovation firm that specialises in delivering
liquidity management and collateral management solutions for
institutional clients in the global securities lending and repo
markets. www.hqla-x.com
Contacts:
BNY Mellon
Nina
Truman
nina.truman@bnymellon.com
+1 212 815 2006
Goldman Sachs
Sebastian
Howell
sebastian.howell@gs.com
+ 44 (20) 7552 5821
HQLAX
Elisa Poutanen
elisa.poutanen@hqla-x.com
+352 621 562 920