BNY Mellon and The International Derivatives Clearing Group, LLC (IDCG) announced this week that BNY
Mellon Clearing, LLC will become a clearing member of the International Derivatives Clearinghouse
LLC (IDCH), a derivatives clearing organization regulated by the U.S. Commodity Futures Trading
With this membership, BNY Mellon Clearing, LLC will be able to offer its clients central counterparty
clearing of interest rate derivatives, which are an important financial risk management tool for
corporations, investors, and municipalities worldwide.
BNY Mellon clients and their market makers will be able to continue to execute interest rate derivatives in the well-established OTC market. With this new membership, clients will also be able to benefit from counterparty credit risk mitigation, special bankruptcy provisions related to margining, and transparent portfolio valuation offered by IDCG through its clearinghouse.
"With the rapid changes occurring in the clearing and settlement process for derivatives, our clients want a capable, stable partner that has membership in clearing organizations like IDCG to support their growing and evolving trading needs," said Sanjay Kannambadi, CEO of BNY Mellon Clearing, LLC.
Garry N. O'Connor, CEO of IDCG said, "IDCG is pleased to welcome BNY Mellon Clearing onto our
platform. The ascension of clearing members from the banking community is an important step forward
for IDCG, and demonstrates the market's broader movement towards our clearing solution."