News

BNY Mellon brings collateral services to Stock Connect

Hong Kong Stock ExchangeBNY Mellon says it is the first triparty agent to offer collateral services for equities settled through the Stock Connect system linking Hong Kong with mainland China. The “bespoke solution” will allow Hong Kong investors who buy mainland-listed A-shares to optimise their portfolios in a manner that was not possible before. "BNY Mellon Markets is always looking for ways to increase liquidity for our clients,” said Natalie Wallder, head of collateral management, Asia Pacific for BNY Mellon. “By unlocking the ability to utilise these assets as collateral, bank and broker dealer clients now have an additional avenue to finance inventory and reduce funding costs via triparty collateral management.” Although triparty collateral solutions are common in major equity markets, the service has proved challenging to implement for A-shares bought through Stock Connect. “This was because collateralizing Shanghai and Shenzhen-listed A-shares required considerable adjustments to collateralization models to integrate with local legal and market infrastructure,” said BNY Mellon, in a statement. ©2018 funds global asia

Executive Interviews

INTERVIEW: Operational challenges

Jun 09, 2018

Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.

INTERVIEW: Making a name

Apr 18, 2018

Formed by a merger in 2012, Old Mutual Global Investors was little-known in Asia. Carol Wong, managing director for Asia-Pacific, is changing that. She talks to George Mitton.

Roundtables

SINGAPORE ROUNDTABLE: Optimism versus caution

Oct 23, 2018

The impact of financial technology, developments in Asian passporting and the promise of new markets in Thailand were among the topics discussed by our panel. Chaired by George Mitton in Singapore.

HONG KONG ROUNDTABLE: a long-term project

Jun 09, 2018

Our panel discussed robo-advisers, ETF Connect, and why the mutual recognition of funds (MRF) scheme will take time to develop. Chaired by George Mitton in Hong Kong.