BNY Mellon Says Derivatives May Need $4 Trillion More Collateral
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Bank of New York Mellon Corp., ranked among the nation’s biggest securities lenders, said traders may need as much as $4 trillion in extra collateral to meet new rules set by derivatives exchanges.
The sum could range from $2 trillion to $4 trillion, Timothy Keaney, vice chairman and chief executive officer of BNY Mellon Asset Servicing, said today during a presentation hosted by Barclays Plc. Investors will need the funds because new rules designed to prevent another financial crisis require more derivatives trades to go through a clearinghouse backed by collateral in case a participant defaults.