BNY Mellon Treasury Services Launches Cross-Currency Sweeps, Automating Liquidity Management for Clients

Rhea-AI Summary

BNY Mellon has launched cross-currency sweeps, enhancing cash management efficiency for clients. This automated tool allows firms to concentrate cash from multiple currencies into their base currency, reducing exposure to foreign exchange volatility. The sweeps automate time-consuming processes, minimizing internal cash management costs and risks, while providing same-day FX settlement. The initial offering includes USD, GBP, EUR, CAD, and CHF, with plans to expand to AUD and JPY. BNY Mellon aims to meet client demands for sophisticated liquidity solutions, backed by its strong credit rating.

Positive

• Launch of cross-currency sweeps enhances cash management for clients.
• Automated tool reduces exposure to foreign exchange volatility.
• Minimizes operational costs and risks in cash management.
• Same-day FX settlement improves efficiency for clients.
• Plans for future expansion of currency capabilities to include AUD and JPY.

Negative

• None.

NEW YORK, June 23, 2021 /PRNewswire/ -- BNY Mellon Treasury Services clients are now able to significantly enhance the efficiency of their cash management following the introduction of cross-currency sweeps, the latest addition to the firm's rapidly expanding liquidity management product suite.

Cross-currency sweeps are an automated liquidity management tool that enables clients that maintain cash in multiple currency accounts to concentrate cash into their base currency. Such sweeps can be particularly valuable in helping clients limit their exposure to foreign exchange (FX) volatility and negative interest rate-bearing currencies.

Liquidity management tools like cross-currency sweeps automate what was previously a time-consuming and resource intensive process for corporate treasurers and their cash management teams. Clients without access to such solutions are obliged to move cash from non-core currency accounts into their base currency account themselves, requiring manual effort and potentially introducing market risk into the treasury and cash management functions.

Cross-currency sweeps automate the end-to-end process while delivering a host of additional benefits to treasurers. These include reducing internal cash management costs and risks, as well as providing fully transparent, same-day FX settlement that requires no day-to-day interaction from clients.

"The launch of cross-currency sweeps is an example of how we're building technology-driven automated solutions to address the cash and liquidity management needs of our clients," says Greg Malosh, Global Liquidity Product Head for BNY Mellon Treasury Services. "This marks the first in a series of improvements we're implementing over the course of the next year to deliver a full range of sophisticated and intelligent solutions, and we are excited to continue to increase our array of offerings as demand grows for liquidity services."

In addition to this latest solution, BNY Mellon's existing liquidity management offering also includes single currency domestic, cross-border and multi-bank sweep capabilities. This comprehensive set of tools allows clients to efficiently manage counterparty risk and optimize liquidity across all providers to achieve their cash and liquidity management objectives.

"As businesses continue to adopt a digital mindset and seek solutions to improve efficiencies in a global marketplace, we are working to anticipate those needs with products and services that appeal to a broader spectrum of client segments, backed by the strong credit rating and trusted reputation of BNY Mellon," says Paul Camp, CEO of Treasury Services at BNY Mellon.

BNY Mellon is currently piloting cross-currency sweeps with several clients, including fintechs, financial institutions, multinational corporates and fund administrators. Initially, the product will be available for USD, GBP, EUR, CAD and CHF, with the aim to extend the capabilities to include AUD and JPY in the near future.

ABOUT BNY MELLON
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment and wealth management and investment services in 35 countries. As of March 31, 2021, BNY Mellon had $41.7 trillion in assets under custody and/or administration, and $2.2 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.

Contact: 
Paul Patella
BNY Mellon 
paul.patella@bnymellon.com
+1 212 635 1378 

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SOURCE BNY Mellon

FAQ

What are cross-currency sweeps offered by BK?

Cross-currency sweeps are automated liquidity management tools that allow clients to concentrate cash from multiple currency accounts into their base currency, reducing exposure to foreign exchange volatility.

When was the cross-currency sweep service launched by BK?

The cross-currency sweep service was launched on June 23, 2021.

Which currencies are initially available for cross-currency sweeps from BK?

Cross-currency sweeps are initially available for USD, GBP, EUR, CAD, and CHF.

What benefits do cross-currency sweeps provide to BK clients?

They automate cash management, reduce costs and risks, and provide same-day FX settlement without day-to-day client interaction.

Is BK planning to expand the cross-currency sweeps service?

Yes, BK plans to expand the service to include AUD and JPY in the near future.