BNY Mellon Enters FX Prime Brokerage Space with New Institutional Offering

BNY Mellon‏ ‏has ventured into the prime-of-prime space by offering a new ‎product that leverages its existing pool of Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, collateral and funding ‎capabilities and opens it up to institutional businesses.‎

Discover credible partners and premium clients at China’s leading finance event!

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 Prime Broker Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Read this Term, 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." ‎‎