BNY Mellon Expands Outsourced Trading Service
Posted by Colin Lambert. Last updated: January 27, 2023
BNY Mellon has unveiled a new multi-asset class outsourced trading offering for buy-side institutions, including asset managers and asset owners.
The offering by BNY Mellon Capital Markets, will be powered by xBK, the buy-side trading division that executes more than $1 trillion in volumes on average annually for the company’s investment management franchise. The bank says the service will give clients “significant opportunities for operational and strategic efficiencies, savings and expansion”.
It adds the service can help clients reduce spending on data, trading infrastructure, analytics and reporting, and all associated trade execution support functions. They are equally able to expand into new asset classes and regions; improve trading outcomes through automation, innovation, and a systematic workflow; and access BNY Mellon’s portfolio of services across front, middle and back-office functions.
“We are committed to supporting the buy-side as they position themselves for long-term growth and competitiveness,” says Adam Vos, CEO of BNY Mellon Markets & Execution Services. “By leveraging the full scale of the BNY Mellon enterprise, combined with our expertise in trading, we are uniquely positioned to provide a high-quality outsourced trading offering to our clients worldwide.”
The bank says it plans to offer external clients a range of services, including coverage of all major asset classes, with the ability to transact across most global markets; expertise in supporting complex workflows of more than 150 investment products across equity, fixed income, and global asset allocation strategies; and data science capabilities which utilise quantitative insights to fine-tune execution strategies, reduce transaction costs and execute trades within a risk-controlled framework.
“The asset management industry is at a critical inflection point as it continues to address fee pressures, higher operating costs, increased trading complexity and heightened regulatory requirements,” observes Dragan Skoko, head of outsourced trading & xBK, BNY Mellon. “Against this backdrop, we have expanded access to our deep execution expertise and invested heavily to build a cutting-edge technology stack. We are ready to meet our clients wherever they are along their journey to reduce costs, enter new markets faster or expand their investment product line-up.”