Tri-party repo and collateral businesses feather BNY Mellon’s earnings
Non-cleared margin rules and US Treasury issuance behind revenue surge
Custody bank BNY Mellon made $293 million in Q3 through its tri-party repo clearing and collateral management business, 11% more than a year ago, as clients rushed to source securities to satisfy non-cleared margin rules and absorb a glut of US Treasuries.
The bank’s finance chief, Michael Santomassimo, said the revenue hike was not caused by the surge in repo rates that roiled markets in September but from onboarding new clients and growing activity from existing customers.
The clearance and
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