WSJ: BNY Mellon Forex Trades Cost Pensions

WSJ continues its zealous coverage of the BNY Mellon investigation.

With Bank of New York Mellon Corp. under growing scrutiny by regulators for its trading practices on behalf of pension funds, a Wall Street Journal analysis shows that the bank executed some currency transactions for two large public pension funds in a way that could trigger higher costs.

At issue is a common industry practice called netting, or "matching" trades. That is when a bank takes two transactions by the same client involving the same currencies—say, trading euros for dollars and dollars for euros on the same day—and uses them to offset each other in a single trade, read the rest here.

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