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.‎

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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.” ‎‎

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