BNY Mellon, a global leader in investment services, has been appointed by SQM Frontier Management (SQM), a US-based asset management specialist to provide global custody and related services. Under the terms of the new mandate, BNY Mellon will also provide foreign exchange services.
Founded in 2010, SQM is an SEC-registered investment adviser focused on Africa and the Middle East. The company’s clients are primarily institutions including university endowments, charitable foundations, and pension funds.
The mandate encompasses a full suite of core US custody services, including real-time access to information and bespoke reporting services for the $670 million asset manager.
BNY Mellon’s prime custody also provides services in relation to global trust and custody, accounting, performance measurement, capital management, liquidity, and capital markets.
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Expanding FX Offering
FX custody is just one of a number of services BNY Mellon is introducing to enable its clients to more efficiently access global currency markets. The comprehensive FX suite leverages the bank’s existing pool of liquidity, collateral, and funding capabilities and opens it up to its global client base.
Earlier this year, BNY Mellon launched a prime brokerage service to enable clients to trade and margin their FX through a counterparty that oversees more than $30 trillion of assets under custody.
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.
Commenting on the news, Donald Savage, COO at SQM Frontier Management, said: “Throughout the entire selection process, BNY Mellon demonstrated a strong expertise in emerging markets custody and FX services, coupled with an unwavering commitment to client service. Their well-established track record delivering a dedicated, high-touch, service was a major factor in our decision to select them as our custodian.”
Scott Kern, head of custody services at BNY Mellon, added: “We are delighted to have been selected by SQM, which has been a leading alternative manager in both frontier and emerging markets for over 15 years. Our selection is a recognition of our ongoing commitment to our clients, our prime custody offering and a continued focus on technology innovation.”