BNY Mellon has announced plans to address the increasingly complex and capital-constrained FX market by launching a prime brokerage service for its institutional clients.
The service will launch in early 2018 and allow participants to more efficiently trade, finance and margin their FX through BNY Mellon, a highly-rated counterparty that oversees more than $33.3 trillion* of assets under custody.
The initiative will add a new FX prime broker into the market, allowing clients to access a significant new source of FX liquidity while helping streamline and reduce operational expenses, including legal and onboarding costs, as well as generating substantial capital and netting gains.
Clients will be able to transact an extensive suite of FX products while also enjoying access to pre- and post-trade services and BNY Mellon's market-leading collateral, funding and liquidity capabilities.
The introduction of the new service comes at a time when some clients are experiencing challenges in sourcing liquidity or are facing increased funding costs in a constrained market.
"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," said Jason Vitale, Chief Operating Officer, Foreign Exchange & Head of Client Execution Services at BNY Mellon Markets.
"FXPB is just one of a number of new services BNY Mellon Markets is introducing that will enable our clients to more efficiently access global currency markets."
"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," said Michael Cooper, head of FXPB at BNY Mellon in London.