It’s not a direct example for corporates, but BNY Mellon now automatically calculates the collateral requirements in their new service for the exchange-traded funds (ETF) marketplace, shows what is happening: regulatory compliance is being integrated into day-to-day systems and services.
BNY Mellon EFT services
The BNY Mellon enhancement is designed to reduce errors in ETF transactions and improve the ability of Authorized Participants (APs) to manage and allocate funds.
The primary market in ETFs is driven by APs which are large financial institutions/broker dealers that trade the underlying securities during the creation or redemption of ETF units. With its recent innovation, BNY Mellon has developed an automated process for calculating collateral requirements and reporting them to the APs on a daily basis.
Before this enhancement, the APs were notified through a manual process that was not as efficient as the new automated system. This additional functionality builds on BNY Mellon's ETF Centre, which was launched as the industry's first global technology platform designed to serve the needs of APs on both the web and mobile applications.
With numerous funds, APs have the option of delivering a basket of securities or cash collateral to an ETF servicer, such as BNY Mellon, when creating new ETF fund shares. By posting cash collateral on the settlement date of an ETF order, APs can ensure that the ETFs shares are released in a timely manner even if some components of the ETF basket cannot be delivered by settlement date. The collateral remains in the ETF servicer's account until delivery of the components of the basket covered by the collateral.
EMIR reporting
There are some excellent stand-alone EMIR reporting services, including those from Misys and Treamo. However, increasingly, suppliers are providing an integrated EMIR reporting module in their TMS, e.g. BELLIN and Salmon. This is an important competition between the services from which corporates can only benefit.
Payment systems
Compliance with anti-money laundering regulations is built into many of the new payment service platforms which claim that they have “any time, any currency, any geography” functionality. Services are now available which have in-built anti-money laundering functionality to restrict corporate payments to those that regulators will allow.
Counter-party risk framework solutions
Exciting new risk management solutions are now coming to market, such as the HPIC Risk Framework (to be reviewed in CTMfile later this month), that are built around the regulatory compliance required in each investment, and in each type of risk.

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CTMfile take: Corporates should insist that all current systems and service providers expand their regulatory compliance support plus get rid of those who have no plans to do this, and never accept new systems and services that won’t significantly reduce your compliance burden. Effective corporate treasury departments take every chance to automate regulatory compliance wherever possible and will only use corporate treasury management systems / services that help them do this.