--- title: BNY Mellon Triparty Accepts Chinese Bonds as Collateral description: There was no mechanism to allow participants to use Bond Connect assets as collateral. image: https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/aberdeen-am-looks-to-grow-in-china-May-12-2022-09-02-21-13-AM.jpg --- ![websites-group](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/new-MMG-01.svg) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-new-marketsmedia-logo.svg)](https://www.marketsmedia.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-traders-redlogo.svg)](https://www.tradersmagazine.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-bestexe-logo.svg)](https://www.bestexecution.net/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-fidesk-logo.svg)](https://www.fixglobal.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-fixglobal-new-logo.svg)](https://www.fixglobal.com/) - [*Facebook*](https://www.facebook.com/MarketsMedia/) - [*Twitter*](https://twitter.com/marketsmedia) - [*Linkedin*](https://www.linkedin.com/company/markets-media-llc) - [Newsletter](https://articles.marketsmedia.com/bny-mellon-triparty-accepts-chinese-bonds-as-collateral#popup-newsletter) #### Want the latest news on securities markets -- FREE? Sign up to receive exclusive articles on topics including: - Equity market structure - Profiles of buy-side investment firms - The evolution of multi-asset-class trading - Regulation and its implications for markets - The search for liquidity in fixed income markets - The convergence of fintech and capital markets Select one or more newsletters you would like to receive: menu [![Markerts media](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/header%20logo.svg "Markerts media")](https://articles.marketsmedia.com/) - [Bonds](https://articles.marketsmedia.com/tag/bonds) - Bonds - BNY Mellon Triparty Accepts Chinese Bonds as Collateral Search - [Home](https://articles.marketsmedia.com/) - [Trending](https://articles.marketsmedia.com/tag/trending) - [Featured](https://articles.marketsmedia.com/tag/daily-email-feature) - [Sectors](https://articles.marketsmedia.com/tag/sectors) - [From The Markets](https://articles.marketsmedia.com/tag/from-the-markets) - [AWARDS](https://articles.marketsmedia.com/tag/events) - [Newsletter](https://awards.marketsmedia.com/newsletter-sign-up) - [Newsletter](https://articles.marketsmedia.com/bny-mellon-triparty-accepts-chinese-bonds-as-collateral#popup-newsletter) Hide search Search - NewsLetter ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/trading-up-occ-iex-select-board-members-citadel-lands-lieblich-573x379-Jul-07-2022-09-34-11-57-AM.jpg) [ON THE MOVE: Citi Hires Artie Ambrose;...](https://articles.marketsmedia.com/on-the-move-citi-hires-artie-ambrose-natalie-a-brown-to-mesirow) ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/Depositphotos_445735906_L.jpg) [Trading Adapts to ESG and Sustainable...](https://articles.marketsmedia.com/trading-adapts-to-esg-and-sustainable-investing) ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/iStock-917493152-Jul-07-2022-09-34-19-09-AM.jpg) [Focus on FX Execution Connectivity](https://articles.marketsmedia.com/focus-on-fx-execution-connectivity) ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/Depositphotos_333839538_L.jpg) [TRACE Turns 20](https://articles.marketsmedia.com/trace-turns-20) 04.14.2021 By Shanny Basar Bonds # BNY Mellon Triparty Accepts Chinese Bonds as Collateral 04.14.2021 By Shanny Basar ![BNY Mellon Triparty Accepts Chinese Bonds as Collateral](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/aberdeen-am-looks-to-grow-in-china-May-12-2022-09-02-21-13-AM.jpg) [Share](https://www.facebook.com/share.php?u=https://articles.marketsmedia.com/bny-mellon-triparty-accepts-chinese-bonds-as-collateral) [Tweet](https://twitter.com/intent/tweet?text=US+ETFs+Have+Record+Net+Inflows&url=https://articles.marketsmedia.com/bny-mellon-triparty-accepts-chinese-bonds-as-collateral) [Share](https://www.linkedin.com/cws/share?url=https://articles.marketsmedia.com/bny-mellon-triparty-accepts-chinese-bonds-as-collateral) Investors are now able to better utilize their Chinese fixed income assets following the introduction of the bonds as eligible collateral on BNY Mellon's triparty platform through Hong Kong's Bond Connect. Bond Connect allows international investors to access the $13.9 trillion China Interbank Bond Market (CIBM) through a market infrastructure linkage in Hong Kong. BNY Mellon's new solution enables clients to utilize these assets as collateral. Once the assets are within our triparty platform, clients can mobilize and optimize the securities as collateral in transactions with counterparties across the globe. Until now, there has been no mechanism to allow participants to use Bond Connect assets as collateral, however, with the Chinese fixed income market only expected to grow, demand has been mounting for such a solution. BNY Mellon triparty solves this problem, enabling investors to use Chinese bonds as collateral for a variety of purposes. Further, the platform is entirely custody agnostic meaning that clients are able to utilize BNY Mellon as triparty agent without custodying assets at the firm. In the first trade, which printed last week, a broker-dealer client was able to collateralize Chinese government securities through BNY Mellon's triparty solution. Under the transaction, BNY Mellon accessed the client's bonds, which were under custody at HSBC, and reflected the assets in BNY Mellon triparty, enabling the client to use the collateral for financing and other purposes. "Enabling clients to collateralize Chinese bonds through triparty is a service that has the potential to revolutionize the global collateral landscape," says Natalie Wallder, Asia Pacific Head of Clearance & Collateral Management at BNY Mellon. "China is a hugely important market and one that will only become more integral to investors in the years ahead. Having the ability to utilize Chinese stocks, and now bonds, as collateral promises to be transformative for clients." "Supporting a solution enabling clients to utilize a triparty agent such as BNY Mellon for assets not held within their custody chain will have significant utility," says Nigel Rangel, Senior Product Manager for Banks and Broker Dealers within Markets and Securities Services at HSBC. "Bond Connect was the first market in which this was achieved and we anticipate this will have practical applications in other markets." BNY Mellon's Bond Connect solution follows in the wake of our Stock Connect product, a similarly groundbreaking collateralization service for Chinese stocks. Launched in early 2018, BNY Mellon's triparty solution for Stock Connect enables clients outside of mainland China to collateralize A-shares traded on the Shanghai and Shenzhen Stock Exchanges through triparty in Hong Kong. Since the launch of the service, BNY Mellon's Stock Connect solution has become an important element in the global collateral ecosystem for institutional investors across the world. Source: BNY Mellon [Share](https://www.facebook.com/share.php?u=https://articles.marketsmedia.com/bny-mellon-triparty-accepts-chinese-bonds-as-collateral) [Tweet](https://twitter.com/intent/tweet?text=US+ETFs+Have+Record+Net+Inflows&url=https://articles.marketsmedia.com/bny-mellon-triparty-accepts-chinese-bonds-as-collateral) [Share](https://www.linkedin.com/cws/share?url=https://articles.marketsmedia.com/bny-mellon-triparty-accepts-chinese-bonds-as-collateral) ![email](https://articles.marketsmedia.com/hubfs/Markets%20Media/email.svg) ### NEWSLETTER SIGN UP And receive exclusive articles on securities markets ### Related articles 1. [![](https://articles.marketsmedia.com/hs-fs/hubfs/Imported_Blog_Media/trading-across-the-pond-Jul-07-2022-09-33-17-07-AM.png?width=376&height=250&name=trading-across-the-pond-Jul-07-2022-09-33-17-07-AM.png)](https://articles.marketsmedia.com/eu-achieves-electronic-trading-of-standardized-otc-derivatives) Regulation ## [EU Achieves Electronic Trading of Standard OTC Derivatives](https://articles.marketsmedia.com/eu-achieves-electronic-trading-of-standardized-otc-derivatives) ISDA warns on proposed changes to post-trade deferrals regime. 07.07.2022 By Shanny Basar 2. [![](https://articles.marketsmedia.com/hs-fs/hubfs/Imported_Blog_Media/iStock-522304914-Jul-07-2022-09-33-41-28-AM.jpg?width=376&height=250&name=iStock-522304914-Jul-07-2022-09-33-41-28-AM.jpg)](https://articles.marketsmedia.com/six-digital-exchange-collaborates-with-fireblocks) Fintech ## [SIX Digital Exchange Collaborates with Fireblocks](https://articles.marketsmedia.com/six-digital-exchange-collaborates-with-fireblocks) The partnership will focus on delivering an institutional custody solution for digital assets. 07.07.2022 By Shanny Basar 3. [![](https://articles.marketsmedia.com/hs-fs/hubfs/Imported_Blog_Media/Depositphotos_103566932_L-2.jpg?width=376&height=250&name=Depositphotos_103566932_L-2.jpg)](https://articles.marketsmedia.com/iosco-publishes-crypto-asset-roadmap) Regulators ## [IOSCO Publishes Crypto-Asset Roadmap](https://articles.marketsmedia.com/iosco-publishes-crypto-asset-roadmap) The IOSCO Fintech Task Force will collaborate closely with other international bodies. 07.07.2022 By Shanny Basar [![MarketsMedia](https://articles.marketsmedia.com/hubfs/MarketsMedia.svg "MarketsMedia")](http://marketsmedia.com) - [About us](https://www.marketsmedia.com/about-us) - [Careers](https://www.marketsmediagroup.com/careers) - [Contact](https://www.marketsmediagroup.com/contact) - [Advertise](https://www.marketsmediagroup.com/advertise) - [Newsletter](https://awards.marketsmedia.com/newsletter-sign-up) - [Corporate Site](https://marketsmediagroup.com) - © 2026 Markets Media Holdings LLC - - Terms & Conditions - Privacy Policy {{ standard\_footer\_includes }}