Tag Archives: bny mellon


World’s Biggest Bank Gets It; Gives It Back

BNY Mellon ‘Gets It’ and Also Gives It Back.

With close-on $29Trillion in deposits and $1.3Trillion in AUM, BNY Mellon (NYSE:BK), the oldest bank in the U.S. is not just the country’s biggest, it ranks as one of the world’s biggest banks. Hundreds of financial industry professionals now working across the financial markets ecosystem are alumni of BNY Mellon, long-recognized as the top training ground for those who aspire to long-term professional careers within financial services.

While many “BNY” alum (including MarketsMuse senior editor) fondly recall an on-boarding process in which mentors made humorous reference to Alexander Hamilton’s orders to his top executives immediately prior to his ill-fated duel with Aaron Burr (“Don’t do anything until I return..”), most followers of BNY Mellon know that its culture is driven by perseverance and a focus to make sure no stone be left un-turned in the course of overcoming a challenge. In that spirit, a young, London-based BNY Mellon exec by the name of Charlie Thompson, a former professional Rugby star who cashed-in his sports career in favor of banking, deserves a hero’s award for re-uniting an industry colleague and highly-decorated Vietnam War hero with an invaluable piece of his personal history.

While Thompson was on holiday last year touring Vietnam, he came across a souvenir hut hawking assorted items that included a set of US military dog-tags. Intrigued, Thompson purchased the tags with the goal of hopefully tracking down the owner and/or family members and returning them. It turns out those dog-tags had been lost nearly 48 years ago by former US Marine Infantry Officer Rick Tilghman, who while serving in Southeast Asia, was awarded not one, but two Purple Hearts and The Bronze Star (with Valor).

Making the story more inspiring, the new personal bond between Thompson and Tilghman is coincident to a long-standing bond market relationship between Thompson’s employer and Tilghman’s firm, the boutique investment bank Mischler Financial Group (the industry’s oldest minority broker-dealer firm owned/operated by Service-Disabled Veterans), where Tilghman, now one of the municipal bond industry’s elder statesmen, oversees the firm’s Public Finance Underwriting group.

Colleen Krieger, BNY Mellon

To their credit, BNY Mellon, long an advocate of Veteran-centric initiatives, has made hay with this story and since went to great lengths to help Thompson coordinate a formal return of Tilghman’s dog-tags, and along the way, produced a documentary story that has since been profiled by multiple news media outlets, including this week’s 10-minute interview of Thompson and Tilghman by Fox and Friends and broadcast via multiple FOX News affiliates.

Here’s the corporate documentary profiling the story that was produced by BNY Mellon. Rolling credits are not included, but a special salute goes to Colleen Krieger, Associate Director of Corporate Communications for BNY Mellon.

Buyside Block Trading Venue Luminex Readies Launch

As if there were not enough electronic trading platforms,  the buyside remains determined to have their own equities trading platform open only to buy-side block trading peers. MarketsMuse Tech Talk Editors tip our hats to FierceFinanceIT.com  for the following update re  Luminex Trading & Analytics, the ATS block trading venue backed by a consortium of large asset managers, which recently announced an updated management team in preparation for the venue’s Q4 launch.

The new management team in place is led by Jonathan Clark, former managing director and head of U.S. equities trading a BlackRock, who will serve as Luminex Trading’s CEO. Clark replaces interim CEO Michael Cashel, who will return to his position as SVP of Fidelity Trading Ventures. Plans for Clark to take over as permanent CEO were previously announced, and as of Tuesday he has officially begun the role.

Plans to build the Luminex Trading venue, which is backed by nine leading investment managers that collectively manage approximately 40 percent of U.S. fund assets, were first announced in January.

The venue will be a buy-side only block trading platform “open to any investment manager primarily focused on the long term and with the desire to trade large blocks of stock with other investment managers,” according to an earlier announcement from the company. The nine investment managers in the consortium backing Luminex are BNY Mellon, BlackRock, Capital Group, Fidelity Investments, Invesco, JPMorgan Asset Management, MFS Investment Management, State Street Global Advisors and T. Rowe Price.

David Hagen, Luminex
David Hagen, Luminex

Luminex Trading announced four other members of the management team this week. Brian Williamson will be head of sales, tasked with further building the client base. Williamson was previously senior global relationship manager with Liquidnet. James Dolan is chief compliance officer, joining the company from Fidelity, where he was previously vice president of compliance for Fidelity Institutional. David Hagen will head product development as Luminex Trading’s new head of product. He was previously director at Pico Quantitative Trading. David Consigli is the company’s new controller, joining from IDB Bank.

Luminex says its platform will offer investment managers lower-cost and more efficient block trading, with transparent trading rules and protocols.

SunGard ETF Pricing Glitch Update: BNY Has $220bil Headache

As reported earlier this week by MarketsMuse, a “computer glitch” suffered by market data vendor Sungard Systems has left custodian BNY Mellon still scrambling to price Net Asset Value (NAV) for nearly 10% of exchange-traded funds held by customers. Late Wednesday, BNY said 20 mutual fund companies and 26 ETF providers have experienced “some pricing problems.” According to sources, the snafu has impacted $220bil worth of assets.

According to Bloomberg news, “A technology breakdown at Bank of New York Mellon Corp., leaving it unable to price more than 10 percent of U.S. exchange-traded funds and some mutual funds, may be causing investors to overpay for them.

BNY Mellon said Thursday in a statement that it’s working “round-the-clock” to fix a technology issue at vendor SunGard Data Systems Inc. The snafu has prevented the bank from issuing net asset values, the equivalent of closing prices, for the funds. The bank said 20 mutual fund companies and 26 ETF providers have experienced some pricing problems.

The bank said customers have been able to continue trading the affected funds. But in the absence of accurate prices, some investors may have paid more than they should when purchasing them, said Ben Johnson, director of global ETF research at Morningstar Inc.

Johnson said that figuring out how to compensate investors hurt by the system failure will be a headache. He said mutual fund investors are likely to suffer more damage, because net asset values play a more critical role for funds than they do for ETFs.

U.S. Securities and Exchange Commission rules do not specifically address this matter, said an SEC official who asked not to be named. The bank’s liability may depend on the wording of its contractual agreements with the funds rather than securities law, the official said.

Kevin Heine, an BNY Mellon spokesman, declined to comment on the matter.

SunGard Apology

SunGard, a financial software company with annual revenue of $2.8 billion, said in a statement Thursday that the incident was not caused by any external or unauthorized system access, and wasn’t related to the market turmoil this week. The issue was caused by an operating system change performed by SunGard on Saturday, Aug. 22.

“We at SunGard apologize to BNY Mellon for the adverse impact this unfortunate incident has had on its operations and clients,” SunGard Chief Executive Officer Russ Fradin said…”

For the full story from Bloomberg, please click here

ETF Pricing Glitch Rattles BNY; SunGard Software Snafu

When it rains it pours. While many ETF investors have been sucker-punched while trying to execute orders during the past several highly volatile days, MarketsMuse finds that a second shoe dropped Monday on the heads of thousands of BNY Mellon customers thanks to a software snafu attributed to market data vendor SunGard systems. The “computer glitch” has impacted the Net Asset Value (NAV) pricing for nearly 800 exchange-traded funds and mutual funds administered by BNY, the world’s largest custodian.

According to the Wall Street Journal, BNY Mellon raised the alarm with regulators and held emergency calls with customers to try and resolve the problem.The system, known as InvestOne and run by financial software provider SunGard, resumed with limited capacity on Tuesday but was still not fully operational on Wednesday, leaving BNY Mellon with a backlog of funds to price.

sungard glitch1Morningstar, Inc., the fund research firm said that 796 funds were missing their net asset values on Wednesday, including ETFs operated by Goldman Sachs, Guggenheim Partners and several dozen mutual funds sold by Federated Investors. Invesco PowerShares Capital Management had 11 ETFs affected by the glitch, a spokeswoman said.

BNY Mellon said it was able to construct Monday net asset values (NAVs) for all affected funds. But there remains a backlog of Tuesday NAVs that still need to be generated.

The problems with calculating the net asset value of ETFs could raise trading costs for investors, said Todd Rosenbluth, director of ETF and mutual-fund research at S&P Capital IQ.

Several traders said they were forced to calculate their own net asset value for ETFs and that they widened the spreads, or the difference, between listed buying and selling prices to accommodate for the higher risk of trading.

“We measure our edge in terms of subpennies,” one trader said. “We can’t afford to be off by a penny.”

Early in the week, BNY Mellon notified regulators and U.S. stock exchanges about the issue. The Securities and Exchange Commission is monitoring the situation, an SEC official said.

“No one here can understand why it’s not up and running yet,” said one executive at a firm that was affected.

For the full coverage by the WSJ, please click here


BNY Mellon Introduces New ETF Tool

MarketsMuse blog update profiles The Bank of New York Mellon Corporation aka BNY Mellon, and their introducing a new ETF negotiation tool. This update is courtesy of Asset Servicing Times’ article, “BNY Mellon launches new ETF negotiation tool“,  with an excerpt below. 

BNY Mellon has introduced a new automated process to aid authorised participants in the creation and redemption of exchange traded funds (ETFs).

The new process allows these participants to use BNY Mellon’s ETF centre to conduct propositions and negotiations on underlying data for ETF baskets with a fund sponsor.

It is designed for large financial institutions that are chosen by such a sponsor to obtain the necessary assets for creating or redeeming an ETF.

Usually, participants will have to go through more than one institution to do this, before shares are transferred to a custodian bank.

The new system is designed to offer a more flexible and more efficient environment for negotiating ETF baskets.

Steve Cook, global head of ETF services at BNY Mellon, said: “Helping authorised participants become more efficient ultimately benefits the other participants in the ETF marketplace, ranging from issuers to those in the secondary trading market.”

To continue reading about this new ETF negotiation tool, click here.

BNY Mellon Awarded Best ETF Service Provider In The Americas for Sixth Year in Row

Here’s a morale booster for BNY Mellon staff:

NEW YORK, May 1, 2012 /PRNewswire via COMTEX/ — BNY Mellon, the global leader in investment management and investment services, has been named as the 2011 “Best Service Provider – The Americas” at the eighth annual Global ETF Awards, which is sponsored by exchangetradedfunds.com. This is the sixth consecutive year that BNY Mellon has been honored as the top service provider to ETFs (exchanged-traded funds).

“Our industry-leading technology platform coupled with the unmatched expertise of our global service group have enabled us to quickly adapt to the wide array of innovative ETFs entering the marketplace,” said Joseph F. Keenan, managing director for BNY Mellon Asset Servicing and head of its global ETF services business. “Our unwavering commitment to providing the highest quality customer service and our passion for partnering with sponsors to help drive the evolution of the ETF industry are both key reasons for consistently winning this award.”