BNY Mellon Reported to Be Holding Settlement Talks On Forex Trades
- US banking giant, Bank of New York Mellon is believed to be holding discussions with legal authorities in the country with reference to forex transactions. The news comes after the bank had previously agreed settlements with other clients in the US.
Bank of New York Mellon (NYSE: BK), a leading global banking provider, is holding talks with legal authorities in the United States in relation to the currency markets, according to Reuters.
The bank was involved in several high level cases with state pension funds as Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term rates were questioned.
The latest news adds misery to the banking sector with forex rates and the FX fix probes still hanging in the shadows.
The Justice Department, as well as the New York Attorney General, both have lawsuits against the world’s largest custody provider. Last week, the bank stated that it would absorb a $589 million charge as it resolves current issues, including the forex rates complaints, however no cases were specified.
Major Banks such as BNYM and State Street came under fire in 2009 as leading pension funds in the US filed complaints relating to the amount of foreign exchange fees charged by the banks. The complaints opened up a new wave of discussions in Transaction Cost Analysis (TCA) and a number of measures were taken by the banks to provide confidence that best execution and best pricing practices were being used.
In December 2013, BNYM settled with the state of Massachusetts’ public pension funds for $15.45 million. Bank of New York Mellon has had some luck in previous settlement talks with the Justice Department in 2012, with the bank agreeing to change its disclosures regarding its forex products and services.
Scrutiny
Pension funds and investment managers have started adding TCA tools to their reporting of forex rates banks charges. UK-based Merseyside Pension fund used independent sources to review forex rates that it was paying. The local government fund was conscious of benchmarks and used services offered by New Change FX, an independent rates checker; the fund is believed to have reduced charges by 50% as a result of the rates verification.
Banks have been supporting the TCA functionality with leading single and multi-bank platforms coming equipped with tools that provide verification of rates.
Bank of New York Mellon (NYSE: BK), a leading global banking provider, is holding talks with legal authorities in the United States in relation to the currency markets, according to Reuters.
The bank was involved in several high level cases with state pension funds as Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term rates were questioned.
The latest news adds misery to the banking sector with forex rates and the FX fix probes still hanging in the shadows.
The Justice Department, as well as the New York Attorney General, both have lawsuits against the world’s largest custody provider. Last week, the bank stated that it would absorb a $589 million charge as it resolves current issues, including the forex rates complaints, however no cases were specified.
Major Banks such as BNYM and State Street came under fire in 2009 as leading pension funds in the US filed complaints relating to the amount of foreign exchange fees charged by the banks. The complaints opened up a new wave of discussions in Transaction Cost Analysis (TCA) and a number of measures were taken by the banks to provide confidence that best execution and best pricing practices were being used.
In December 2013, BNYM settled with the state of Massachusetts’ public pension funds for $15.45 million. Bank of New York Mellon has had some luck in previous settlement talks with the Justice Department in 2012, with the bank agreeing to change its disclosures regarding its forex products and services.
Scrutiny
Pension funds and investment managers have started adding TCA tools to their reporting of forex rates banks charges. UK-based Merseyside Pension fund used independent sources to review forex rates that it was paying. The local government fund was conscious of benchmarks and used services offered by New Change FX, an independent rates checker; the fund is believed to have reduced charges by 50% as a result of the rates verification.
Banks have been supporting the TCA functionality with leading single and multi-bank platforms coming equipped with tools that provide verification of rates.