CIBC Mellon has integrated its Toronto securities lending trading desk with those of one of its parent companies, BNY Mellon, said Rob Ferguson, CIBC Mellon's senior vice president, capital markets.
The Toronto desk is being added to BNY Mellon's trading desks in New York, Pittsburgh, London and Hong Kong. Mr. Ferguson said CIBC Mellon will continue to work directly with its securities lending clients, but BNY Mellon will now serve as CIBC Mellon's securities lending agent, Mr. Ferguson said.
“One reason we did this is to take advantage of the technology BNY Mellon uses,” Mr. Ferguson said. “It's more efficient, adds business incrementally and gives us access to a broader array of trading desks. … There are real advantages to have someone on the ground in London and Hong Kong.”
The integration had been planned since 2011, and the conversion was conducted this past weekend, Mr. Ferguson said.
BNY Mellon's securities finance business has more than $2.5 trillion in lendable assets and outstanding loan balances of more than $250 billion. CIBC Mellon's program has more than C$500 billion (US$486 billion) in lendable assets and C$60 billion on loan.
CIBC Mellon is a joint venture of BNY Mellon and Canadian Imperial Bank of Commerce.
