BNY Mellon Asset Servicing has developed a new platform, OmniAccess, that will make it easier for asset managers and broker-dealers to post, process and view data related to their omnibus, or combined futures, accounts.
Combining individual client accounts into a single trading entity makes it easier for brokers to conduct their transactions, but it often creates headaches for their back-offices to manage all of the data on the individual accounts composing the omnibus account.
Despite such back-office challenges, BNY Mellon has “seen a tremendous migration” to omnibus accounts from the more traditional transfer agent model over the past three years, according to Eileen Gilfedder, managing director of enterprise investor services for BNY Mellon Asset Servicing's Global Financial Institutions business.
“This is a very significant new model,” she said. “A very significant migration.”
Omnibus offers broker-dealers a number of advantages: more control and better service, and the ability to hold mutual fund positions directly on their books. Gilfedder said that she expects even more firms to turn to this model over the next 18-months.
OmniAccess is designed to help executives better prepare for this transition. With OmniAccess, broker-dealers will be able to place non-personal, account-level information regarding the funds they distribute on to a centralized platform. A single platform allows for more efficient processing and access of administrative information because the managers will have direct access to the same information input by the broker-dealers during their trades. This data can also be customized to generate reports for faster reconciliation and verification.
"OmniAccess provides clients with the resources they need to optimally manage their shareholder serving obligations," said Michael DeNofrio, head of U.S. investor services within BNY Mellon Asset Servicing's Global Financial Institutions business.
BNY Mellon is the second largest provider of mutual fund transfer agency services and is the largest provider of sub-accounting services in the U.S., as ranked by The 2011 Mutual Fund Service Guide from the publishers of Money Management Executive.
Through its asset division BNY Mellon Asset Servicing, the company offers a variety of functions including custody and fund services, securities lending, performance, analytics and executive services. These services are provided either through BNY Mellon or other related companies.