This is the full document of the class action suit filed against Bank of New York Mellon (BNY Mellon) by Southeastern Pennsylvania Transportation Authority (SEPTA). If this is indeed what happened then it's simply terrible:
As detailed in the Florida and Virginia Actions, from at least 2000, and continuing through the present day, BNY Mellon has manipulated FX transactions executed by the Company in order to maximize profits to BNY Mellon at the expense of the Company's clients, such as SEPTA.
In essence, BNY Mellon charges its clients inflated FX rates when buying foreign currency, and deflated FX rates when selling foreign currency. The rate BNY Mellon actually charges clients is set after a FX transaction is executed and after the Company has an opportunity to observe post-Execution changes in the FX currency market. The difference between the actual FX transaction price and the amount ultimately charged to BNY Mellon's clients is pocketed by the Company as profit.
BNY Mellon's practices remained unknown to Plaintiff and the Class until the Florida and Virginia Actions were unsealed because, inter alia, the account statements provided to BNY Mellon's clients failed to provide pertinent details including time stamps for each FX transaction. Without FX time stamps, clients were unable to verify that the FX rates charged by BNY Mellon were consistent with the actual FX rates at the time the FX transactions were executed. Moreover, according to the Florida Action, in order to avoid detection of its conduct the Company provided its clients account statements that showed FX rates that fell within the daily trading range. BNY Mellon also used employees located in New York and Pittsburgh to hold "reconciliation" calls to "choose foreign exchange rates, i.e., the Falsified FX Rates, of the false price to charge" the Company's clients.
BNY Mellon's actions have generated hundreds of millions of dollars annually in unwarranted profits - wrongly taken from BNY Mellon's clients -and may account for more than one-half of BNY Mellon's entire annual FX trading profits.
SEPTA relies on the action brought against BNY Mellon by FX Analytics in Virginia and Florida, which amongst other things states the following:
According to the complaints filed in the Virginia and Florida Actions, when BNY Mellon received instructions to execute a foreign trade, it would convert funds from USD into a foreign currency to complete the transaction. After the trade was executed, "[BNY Mellon] would note the low and high exchange rate of the day for the two currencies involved in the FX trade."
At the end of the trading day, BNY Mellon sinlply "ignored the price [it] paid for the FX [conversion]" and charged its clients for the "FX transaction as if the trade occurred at either the high or low of the day (depending on the nature of the transaction, buy or sell), in order to charge [its clients] the least favorable rate that occurred that trading day."
Example of a transaction brought in the document:
Click Read More below to see the full court document.
// <![CDATA[
var docstoc_docid="73586260";var docstoc_title="class action suit against BNY Mellon";var docstoc_urltitle="class action suit against BNY Mellon";
This is the full document of the class action suit filed against Bank of New York Mellon (BNY Mellon) by Southeastern Pennsylvania Transportation Authority (SEPTA). If this is indeed what happened then it's simply terrible:
As detailed in the Florida and Virginia Actions, from at least 2000, and continuing through the present day, BNY Mellon has manipulated FX transactions executed by the Company in order to maximize profits to BNY Mellon at the expense of the Company's clients, such as SEPTA.
In essence, BNY Mellon charges its clients inflated FX rates when buying foreign currency, and deflated FX rates when selling foreign currency. The rate BNY Mellon actually charges clients is set after a FX transaction is executed and after the Company has an opportunity to observe post-Execution changes in the FX currency market. The difference between the actual FX transaction price and the amount ultimately charged to BNY Mellon's clients is pocketed by the Company as profit.
BNY Mellon's practices remained unknown to Plaintiff and the Class until the Florida and Virginia Actions were unsealed because, inter alia, the account statements provided to BNY Mellon's clients failed to provide pertinent details including time stamps for each FX transaction. Without FX time stamps, clients were unable to verify that the FX rates charged by BNY Mellon were consistent with the actual FX rates at the time the FX transactions were executed. Moreover, according to the Florida Action, in order to avoid detection of its conduct the Company provided its clients account statements that showed FX rates that fell within the daily trading range. BNY Mellon also used employees located in New York and Pittsburgh to hold "reconciliation" calls to "choose foreign exchange rates, i.e., the Falsified FX Rates, of the false price to charge" the Company's clients.
BNY Mellon's actions have generated hundreds of millions of dollars annually in unwarranted profits - wrongly taken from BNY Mellon's clients -and may account for more than one-half of BNY Mellon's entire annual FX trading profits.
SEPTA relies on the action brought against BNY Mellon by FX Analytics in Virginia and Florida, which amongst other things states the following:
According to the complaints filed in the Virginia and Florida Actions, when BNY Mellon received instructions to execute a foreign trade, it would convert funds from USD into a foreign currency to complete the transaction. After the trade was executed, "[BNY Mellon] would note the low and high exchange rate of the day for the two currencies involved in the FX trade."
At the end of the trading day, BNY Mellon sinlply "ignored the price [it] paid for the FX [conversion]" and charged its clients for the "FX transaction as if the trade occurred at either the high or low of the day (depending on the nature of the transaction, buy or sell), in order to charge [its clients] the least favorable rate that occurred that trading day."
Example of a transaction brought in the document:
Click Read More below to see the full court document.
// <![CDATA[
var docstoc_docid="73586260";var docstoc_title="class action suit against BNY Mellon";var docstoc_urltitle="class action suit against BNY Mellon";
58% of UK Investors Choose Professional Guidance over 'Finfluencers’
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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