BNY Mellon Asset Servicing has enhanced its Workbench platform to help institutional investors comply with new accounting standards which require them to report the industry ratings of their counterparties when over-the-counter (OTC) derivatives are held.

The new enhancements were specifically designed to help US Government reporting clients meet the requirements of Governmental Accounting Standards Board (GASB) Statement No 53, Accounting and Financial Reporting for Derivative Instruments.

According to the BNY Mellon Asset Servicing, the new service displays short- and long-term ratings for counterparties and related entities as well as additional information about the underlying security or index.

By combining accounting and analytical information, clients will be able to see a consolidated view of their counterparty exposures. Moreover, the new reporting functionality extends the scope of its Derivatives360, which supports derivatives throughout their lifecycle.

Chris Richmond, managing director of global product accounting for BNY Mellon Asset Servicing, said: “We have expanded the counterparty exposure reporting for swaps and forwards to assist clients to efficiently determine ratings for their counterparties or any other legal entities or companies related to the counterparty.

“Consolidating this data enables institutional investors to view their derivatives with greater transparency across accounting, counterparty and rating data and gain a more complete view of their portfolios.”