BNY Mellon has extended the trading service that its own asset managers use, making it available to other fund managers and asset owners globally.
BNY Mellon Capital Markets offers provides the outsourced trading service in conjunction with the bank’s xBK buy-side trading division that executes on average more than $1 trillion in volumes annually for the company’s investment management franchise.
The firms said this “comprehensive, global multi-asset trading service will give clients significant opportunities for operational and strategic efficiencies, savings and expansion”.
Specific advantages for clients, said BNY Mellon, including reduced spending on data, trading infrastructure, analytics and reporting, and all associated trade execution support functions.
It will also aid investors wanting to expand into new asset classes and regions by leveraging BNY Mellon’s economies of scale
BNY Mellon also runs custody and fund administration on a third-party basis, and these will be made available to trading clients.
Dragan Skoko, head of outsourced trading and xBK, said: “The asset management industry is at a critical inflexion point as it continues to address fee pressures, higher operating costs, increased trading complexity and heightened regulatory requirements. Against this backdrop, we have expanded access to our deep execution expertise and invested heavily to build a cutting-edge technology stack."
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