BNY Mellon Adds Algos to Custody FX
Posted by Colin Lambert. Last updated: October 7, 2021
BNY Mellon is expanding its Custody FX offering, adding new trading capabilities and pivoting from a primarily custody-focused service model into what it terms a transparent open architecture that can be leveraged by a variety of client types for their rules-based, end-to-end transaction needs.
The new approach delivers more autonomy for users to transact in the manner in which they wish, the bank says. Among the new capabilities, FX trading programme clients can now achieve improved large order execution via access to algorithmic execution methods for orders over a certain size.
In 2015 BNY Mellon settled lawsuits from regulators and clients over mark ups on so-called ‘standing instruction’ trades after investigations claimed bank traders were inadequately time-stamping the trades and executing them at rates highly advantageous to the bank.
BNY Mellon says the incorporation of these new capabilities into the programme will enable users to design elements of their standing orders as well as deliver further enhancements. These include improved transparency with upgraded trade micro-timestamping that facilitates enhanced transaction cost analysis (TCA) for clients and provides visibility into how their instructions are being fulfilled and executed. Clients also have more customisable rules-based options to tailor their FX strategies.
The bank is also touting its enhanced Asia execution capabilities, including adding expanded benchmark execution to give clients more transparency while broadening the client coverage team throughout the region.
“These enhancements are the result of listening to our clients who told us loud and clear that they want to be more empowered to customise their FX trading programme parameters, trade in larger sizes, enjoy consistent pricing and attain full visibility into how their instructions are being carried out,” says Jason Vitale, global head of FX at BNY Mellon. “These improvements place clients firmly in control.”