BNY Mellon intends to grow its broker-dealer services department in Asia by up to 20% over the coming year, and it has just transferred Michael Schroeder from New York to head the division.
Schroeder has been specifically appointed to help improve the financial services firm’s collateral management and securities clearance capabilities. In his new capacity he reports to Andrew Gordon, executive vice-president for broker-dealer and alternative investment services.
Gordon says that the relocation is part of the bank’s plans to grow its regional capabilities.
“There is an overall trend towards the greater use of collateral. There are more counterparties in Asia looking to raise finance or provide and engage in derivatives transactions where there is a need to monitor and exchange collateral,” he told asiamoney.com today (July 14).
“We take the operational burden off funding counterparties who do not necessarily have the back-office capacity to manage this, and as the use of collateral become more popular, there is an increasing need for our collateral management services.”
BNY Mellon believes there is scope to grow to take advantage of the rising size of Asian investors and brokers, plus the desire of regional institutions to have a third party to retain their capital. The US firm’s broker-dealer services division acts as a third party for counterparties, providing them with operating efficiency in collateral management and securities.
“The broker-dealer services team is actively hiring in Asia and within a year, growth by 10% to 20% is realistic,” Gordon added.
The company’s broker-dealer services team is comprised of 25 to 30 employees in the region, while it has over 4,000 workers in the region, including back office and support staff primarily based in India. BNY Mellon is growing its personnel faster in Asia-Pacific than anywhere else in the world.
“As our chairman has said, as a company the growth in Asia is two times of that in EMEA [emerging Europe, Middle East, and Africa], while the growth in EMEA is two times that in the US,” noted Gordon.
He highlighted BNY Mellon’s intention to expand in Hong Kong and Singapore, two markets in which it believes there are sizeable growth prospects.
Schroeder will act as an integral part of the bank’s regional growth plans. A BNY Mellon veteran, he has worked in the company’s New York office for 13 years, focusing on product development and project management. He was heavily involved in the launch of the firm’s global tri-party repo and collateral management service.
The relocation is just one of several new appointments made by BNY Mellon in recent times. Last month asiamoney.com reported Daniel Smith’s internal transfer to BNY Mellon Hong Kong as chief administration officer for Asia Pacific (see story), while in January the firm hired David Brown in Hong Kong as vice-president for broker-dealer global sales.
BNY Mellon says that its broker-dealer services division oversees more than US$1.5 trillion in tri-party balances worldwide.