BNY Mellon to manage derivatives for BA pension fund

Pension nest egg 410The British Airways Pension Fund has selected BNY Mellon to provide over-the-counter derivatives services and collateral management.

The UK-based airline runs two schemes, the Airways Pension Scheme and New Airways Pension Scheme, and the company has struggled with shortfalls in recent years. The schemes together had assets estimated at more than £15 billion (€18 billion) last year.

“The needs of global retirement systems have grown increasingly sophisticated given ongoing regulatory developments, the emergence of new, more complex financial instruments and today’s cross-border investment environment,” says Nadine Chakar, executive vice president and head of product and strategy for BNY Mellon's Global Collateral Services business.

BNY Mellon says it currently services $2 trillion (€1.5 trillion) in global collateral and had $26 trillion in assets under custody as of the end of 2012.

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