BNY Mellon Enters FX Prime Brokerage Space with New Institutional Offering

BNY Mellon’s new service benefits from the combination of a ‎‎counterparty with the capacity of a custodial ‎bank. ‎

BNY Mellon‏ ‏has ventured into the prime-of-prime space by offering a new ‎product that leverages its existing pool of liquidity, collateral and funding ‎capabilities and opens it up to institutional businesses.‎

BNY Mellon’s FXPB product is intended for a client segment that includes ‎banks, hedge funds and other buy-side institutions, which are experiencing challenges accessing the wholesale ‎‎foreign exchange price matching community via a prime brokerage model‎. ‎

The increase in banking regulation, which mandates increased minimum ‎levels of capital and increases in reporting expenses, has resulted in a lot of ‎banks leaving the prime broking space‏.‏ ‎ ‎

The new service is expected to cater to clients who do not have ‎an FX prime broker, or that need additional credit lines to access either ‎liquidity or execution services. The exit of legacy players in the prime ‎brokerage space will allow new offerings, such as BNY Mellon’s upcoming product, to rapidly ‎gain customers and fill the void. ‏

FXPB is just one of a number of new services BNY Mellon Markets is introducing ‎that will enable its clients to more efficiently access global currency markets, says ‎Michael Cooper, head of FXPB at BNY Mellon in London. ‎

He continued: “BNY Mellon’s new service benefits from the combination of a ‎highly-rated counterparty with the capacity of a market-leading custodial ‎bank. It opens up access to multiple new sources of liquidity for new and ‎existing clients. FXPB is the ideal tool for those looking to balance the ‎challenges of the uncleared margin regime with the need to deliver better ‎execution on behalf of their clients.” ‎

Jason Vitale, COO of Foreign Exchange & Head of ‎Client ‎Execution Services at BNY Mellon Markets, added: ‎”We’re launching a traditional prime brokerage service with a twist. By ‎‎leveraging BNY Mellon’s leadership in collateral management, funding and ‎‎liquidity, clients will benefit from a fully-integrated and complete FX service.” ‎‎

(Photo: flickr)

bitcoin
Bitcoin (BTC) $ 9,276.78 1.89%
ethereum
Ethereum (ETH) $ 238.89 4.60%
tether
Tether (USDT) $ 0.997616 0.29%
ripple
XRP (XRP) $ 0.187396 5.81%
bitcoin-cash
Bitcoin Cash (BCH) $ 238.92 6.82%
bitcoin-cash-sv
Bitcoin SV (BSV) $ 186.84 20.64%
cardano
Cardano (ADA) $ 0.103931 6.23%
litecoin
Litecoin (LTC) $ 43.68 4.47%
crypto-com-chain
Crypto.com Coin (CRO) $ 0.135182 3.12%
eos
EOS (EOS) $ 2.57 5.74%
S&P 500  ^GSPC 
$3,179.72  $49.71  (1.59%)
Dow Jones Industrial Average  ^DJI 
$26,287.03  $459.67  (1.78%)
NASDAQ Composite  ^IXIC 
$10,433.65  $226.02  (2.21%)
Russell 2000  ^RUT 
$1,442.88  $11.02  (0.77%)
Crude Oil Aug 20  F*CL.NYM 
$40.43  $0.2000  (-0.49%)
   
$0.0000  $0.0000  (0.00%)