BNY Mellon has made changes to its Markets Group following the departure of Michelle Neal, CEO of that group, who has joined RBC.Based in New York, Neal will start her new position as head of RBC’s US FICC business in June and will report into Jonathan Hunter, global head of FICC at the bank.“In this role, Michelle will be responsible for providing strategic leadership to our US FICC business in partnership with our global product, sales and regional heads. She will have oversight for all strategic and execution-related aspects of the business, including ensuring that we continue to expand RBC’s footprint and client franchise, that we manage our performance and risks effectively and that we continue to build and retain a team of top talent to strengthen our U.S. franchise.
Tag: BNY Mellon
Profit & Loss understands that Claire Lincoln has joined Bank of New York Mellon in London. Reporting to James Taylor, global head of e-sales and EMEA platforms, Lincoln will focus on European clients as the bank extends its e-platform
Lincoln last worked in the FX industry in April 2016 when she left Credit Suisse after four years working in the bank’s e-FX sales including its proprietary platform and AES. Prior to that she spent almost seven years at Bloomberg in relationship management roles.
John Velis joined BNY Mellon’s global strategy team as FX and macro strategist for the Americas.
In this new role, Velis will work as one of the bank’s “Aerial View” commentators, sharing his insights through regular market commentary distributed to both clients and the media.
Velis joins BNY Mellon from State Street, where he worked to help run a macro research function that applied proprietary data on investor behavior, market-risk modelling and real-time inflation analysis to the firm’s client base.
Harry Moumdjian has been appointed as global head of FX Sales at BNY Mellon Markets.
In this newly created role, Moumdjian will be tasked with unifying BNY Mellon Markets’ FX sales teams globally and reviewing the bank’s currency product suite as it continues to try and build out a full-service FX platform.
Moumdjian joins from Morgan Stanley, where he has spent the past eight years, most recently overseeing the firm’s DeltaFX and e-FX sales functions. Prior to this, he worked at Goldman Sachs, Bank of America and Citibank in a variety of FX sales and trading roles.
In this week’s In the FICC of It podcast, after last week’s confident prediction of a German World Cup win Profit & Loss’ managing editor Colin Lambert puts a hex on another team by predicting them as winners and editor Galen Stops volunteers to play fact checker on statements made by panellists at a conference.
They also discuss this week’s news, including the Global Foreign Exchange Committee meeting, BNY Mellon launching an options business, the latest from the crypto world and the latest evidence (unproven) of regulatory arbitrage involving Australia and the US.
On a more sombre note they also pay tribute to FX industry veteran Paul Chappell, who passed away this week, with a couple of lighter hearted stories involving him.
Key to the announcement made today by BNY Mellon that it is launching an FX options desk is that the bank believes that this represents the next step in its transition to a “full-service” FX franchise.
“We’re transitioning from a custody FX business to a more traditional full-service FX provider,” Adam Vos, global head of FX at BNY Mellon Markets, tells Profit & Loss. “As such, FX options was a key deliverable along this journey because it means that we can now meet more of our
client’s trading and hedging demands. It’s very important that they no longer have to go somewhere else for this activity, they can trade options – as well as other products – directly with us.”
BNY Mellon has launched its FX options desk, enabling clients to better hedge currency exposure and express their views on the future direction of FX markets.
The bank says that clients now have access to a full-service currency trading desk, offering spot, forwards, non-deliverable forwards as well as options. “This offering complements an existing suite of broader FX services including FX custody, payments and hedging,” it adds.
Options represent the latest step in a broad build out of BNY Mellon’s FX business – the bank has made a series of senior hires over the past two years and in January announced plans to launch an FX prime brokerage service.
Richard Estes has left BNY Mellon after 23 years with the US bank, according to sources. Based in New York, Estes had most recently held the position of managing director, FX markets, prior to his departure.
Estes started his FX career in 1987 at JP Morgan, where he spent more than eight years, mainly in FX sales roles.
He joined BNY Mellon in 1995 as vice president, FX sales. In 1999, Estes helped design and launch one of the first Internet-based client-to-bank FX trading platforms – iFX Manager – and subsequently helped negotiate the sale of the multi-bank licensing rights for the platform to the then-nascent FXall group in 2000.
BNY Mellon has opened an FX trading room in Seoul, Korea, offering liquidity both to domestic clients in Korea looking for exposure to major global currencies as well as to counterparties seeking to trade KRW across Asia-Pacific and around the globe.
Clients transacting through the trading room will be able to execute strategies using a variety of instruments, including spot, FX forwards and non-deliverable forwards.
“BNY Mellon is strengthening its capabilities in Korea to provide a more convenient and comprehensive KRW FX trading service to our domestic and international clients, while also helping them conduct their business more efficiently. This reflects our deep commitment to the Korean market and our confidence in the expansion of our FX trading business,” says Mark Militello, head of markets for BNY Mellon in APAC.
The announcement by BNY Mellon this week that it is launching an FX prime brokerage (FXPB) service is interesting for a couple of reasons.
Superficially, it bucks a trend that has developed in recent years of banks scaling back, or even shutting down, their FXPB businesses. However, Profit & Loss already argued in a special report looking at prime services published in Q3 2017, that this trend was beginning to reverse itself.
So perhaps more significant is that it indicates that the barriers to entry in FXPB have been lowered as the cost of technology and infrastructure has both decreased and become more available.