BNY Mellon has made FICC sponsored cleared repo available through its LiquidityDirect short-end investment portal. Institutional clients can now seamlessly invest cash in cleared repo through LiquidityDirect. The addition of cleared repo to LiquidityDirect broadens the range of short-term investments on the platform to include a secured, centrally cleared alternative that provides counterparty diversity and potentially enhances yields. Sponsored membership enables sponsoring firms like BNY Mellon to provide cleared repo to end-users that would otherwise be ineligible to access the FICC clearing house, enabling clients to invest and raise cash in cleared repo without the financial obligations of full clearing house membership.
Since its launch in 1997, LiquidityDirect has become one of the market’s leading portals for investing in all types of money market funds, including treasury funds, government funds, prime funds, taxable and tax-exempt funds, as well as offshore money funds. As of year-end 2020, the platform supported almost USD9trn in transaction flow annually for more than 700 users. Through integration into third-party cash management systems such as GTreasury and Hazeltree, LiquidityDirect is embedded within clients’ trading ecosystems, enabling them to combine their treasury, back office, cash management and short-end investing activities.