BNY Mellon and Google Cloud to Transform U.S. Treasury Market Settlement and Clearance Process

Bank of New York Mellon and Google Cloud are collaborating to predict settlement failures.

The prediction in failures of billions of dollars in the daily settlement will help generate considerable capital and liquidity savings. Typically, approximately two percent of transactions fail to settle, notes the announcement.

BNY Mellon will use Google Cloud’s data analytics, artificial intelligence (AI), and machine learning (ML) technologies to develop new collateral management and liquidity solutions built on Google Cloud.

CEO, BNY Mellon Clearance & Collateral Management, Brian Ruane, said, "We are excited to work with Google Cloud to develop a first-of-its-kind solution to help our clients predict approximately 40% of settlement failures in Fed-eligible securities with 90% accuracy. A settlement failure occurs when a buyer and seller fail to exchange cash and securities by the close of business on the scheduled settlement date. This prediction model could be a game-changer for market participants and is a tremendous showcase of how we are leveraging emerging technologies, such as the public cloud, to accelerate the delivery of meaningful solutions for our clients."

President, Google Cloud, Rob Enslin, said, "BNY Mellon is building on its existing capabilities, using the latest cloud technologies to test and refine its approach to reduce treasury settlement failures, ultimately helping its clients save money and helping transform the U.S. Treasury market. We’re proud to have helped BNY Mellon use our leading data analytics and artificial intelligence technologies to transform the settlement and clearing process, and set an example for the industry overall."

BNY Mellon is using Google Cloud for its scalable data analytics capabilities. Google Cloud is also used to train models on millions of trades to consider every value and factor that could result in a failure. 

It will also help BNY Mellon to reduce client risk and increase financial market efficiency with fewer failure points and greater liquidity. 

BNY Mellon is also using Google Cloud for its development environments for faster code delivery at reduced infrastructure costs, notes the announcement.