Florida Pension Looks To Hire Bank For Collateral Management

Bank of America

Nearly a dozen banks are pitching their services to the Florida State Board of Administration (SBA), the entity that manages assets for the Florida Retirement System.

Reported by the Securities Lending Times:

Multiple banks are competing to provide the State Board of Administration of Florida with prime and collateral management services, it has been revealed.

The State Board of Administration of Florida, which manages the state’s public employees’ retirement savings, has received pitches from CitiGroup, Deutsche Bank, Newedge, Bank of America Merrill Lynch and Pershing for prime services.

State Street, BNY Mellon and CitiGroup have submitted pitches to provide collateral management services following the State Board of Administration of Florida’s request for proposals.

A spokesperson said that a decision on the providers is expected by the end of this week.

An explanation of the services the SBA is seeking, from Pensions & Investments:

Prime services include prime brokerage in short-selling of securities, foreign-exchange prime brokerage, as well as clearing for futures, options and over-the-counter derivatives, including swaps, according to the solicitation.

Collateral management includes margin collateral custody and management services related to prime services.

The SBA manages $180.3 billion in assets.