(Source: PRNewswire)CHARLOTTE, N.C., Sept. 30 /PRNewswire/ -- Bank of America today announced the launch of Reserve Account Services, an expanded suite of specialized accounts and services that enable securities broker-dealers and futures commission merchants (FCMs) to keep larger balances in the reserve accounts they maintain for the protection of client assets.

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Federal regulations require these dealers to maintain balances in reserve to safeguard client assets, and those reserves must be entirely separate from the dealers' own accounts. These regulations -- SEC Rule 15c3-3 and CFTC Rules 1.20 and 30.7 -- are known collectively as the "Customer Protection Rule."

In certain instances, the regulations also place caps on the amount of reserves that can be held at any one depository institution, meaning that dealers must spread these balances among a number of banks. Because the caps depend in part on the size of the bank, Bank of America's large capital base can support the very sizable balances that are typical for large dealers.

"With this expanded suite of capabilities and the size and strength of our balance sheet, Reserve Account Services enables broker-dealers and FCMs to consolidate larger balances of reserve funds with one bank," said Kathleen Gowin, Bank of America's financial services treasury executive. "This reduces the confusion, complexity and opportunity for error that can result from a large number of duplicative banking relationships."

Reserve Account Services offers broker-dealers two types of accounts, trust custody accounts or commercial money market deposit accounts, both of which will assist broker-dealers in complying with SEC Rule 15c3-3. For FCMs, Reserve Account Services offers trust custody accounts that similarly support compliance with CFTC Rules 1.20 and 30.7.

"Bank of America's Reserve Account Services demonstrates our commitment to driving innovation in liquidity solutions for our clients," said Greg Kavanaugh, senior product management executive in Global Product Solutions at Bank of America.

Bank of America Global Corporate and Investment Bank

Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial products and services. The company's Global Corporate and Investment Banking group (GCIB) focuses on companies with annual revenues of more than $2.5 million; middle-market and large corporations; institutional investors; financial institutions; and government entities. GCIB provides innovative services in M&A, equity and debt capital raising, lending, trading, risk management, treasury management and research. Bank of America serves clients in 150 countries and has relationships with 99 percent of the U.S. Fortune 500 companies and 83 percent of the Fortune Global 500. Many of the bank's services to corporate and institutional clients are provided through its U.S. and UK subsidiaries, Banc of America Securities LLC and Banc of America Securities Limited. For additional information, visit http://www.bankofamerica.com/

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Bank of America

CONTACT: Michael Schneider, RF|Binder Partners, +1-212-994-7546,Michael.Schneider@rfbinder.com; or Anuj Baveja, Bank of America,+1-646-855-3365, Anuj.baveja@bofasecurities.com

Web site: http://www.bankofamerica.com/