Bank of America Merrill Lynch Enhances Notional Pooling Capability

New York - 26 July 2012

Corporate Clients Benefit From Consistent Product Offering on Global Liquidity Platform

Bank of America Merrill Lynch have announced that it has added Notional Pooling to its Global Liquidity Platform, a centralized technology hub for liquidity management. Companies can utilize single and multicurrency notional pooling solutions to reduce capital cost, increase control of working capital and simplify treasury activity.

Notional pooling refers to the non-physical netting of multiple bank account balances against each other to provide clients interest efficiencies and balance consolidation benefits. With the relaunch of Single Currency Notional Pooling and Multicurrency Notional Pooling, BofA Merrill now offers a complete integrated suite of cash concentration solutions through its Global Liquidity Platform, including Interest Optimization, Physical Cash Concentration and Multi Bank Cash Concentration.

“Our clients are increasingly operating in an environment of multiple currencies, jurisdictions and legal entities,” said Greg Kavanaugh, head of BofA Merrill’s Global Liquidity product team. “By offering both notional and physical cash concentration options, we can help our clients improve the value they receive from their liquidity balances around the globe.”

Clients use single currency notional pooling as a tool for interest enhancement when all accounts are in the same currency. Multicurrency notional pooling provides clients operating with different currencies a way to calculate a net notional position in a single currency of their choice without the need to perform actual foreign exchange or swap transactions. With both pooling alternatives, clients benefit from a more efficient cash concentration process.

“These notional pooling capabilities are an important addition to our Global Liquidity Platform,” Kavanaugh added. “Our clients can now experience a globally consistent product offering that can help them operate more knowledgably and efficiently in the day-to-day management of their funds.”

The Global Liquidity Platform is a centralized technology hub that enables BofA Merrill to provide consistent, seamless and integrated liquidity solutions to clients around the world. It encompasses operational, liquidity and product-specific components or modules that offer clients robust liquidity concentration products, global account connectivity and enhanced reporting capabilities. BofA Merrill embarked on this multi-million dollar platform in 2009 as part of the bank's commitment to innovative technology for its treasury management and corporate banking clients.

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