Articles tagged by BNY Mellon
Mischa Irsch has joined State Street Global Markets in Boston as an FX sales trader.
BNY Mellon has apparently made a further two senior hires to its FX business.
The bank confirms that Jeff Leal has joined as global head of e-FX. Leal was last global head of electronic markets at UniCredit, prior to which he global head of e-FX trading at Nomura.
Leal is believed to have started this week.
Meanwhile market sources tell Profit & Loss that Jason Vitale will soon be joining the bank as COO of the FX business, although the bank could not confirm this.
Dan Watkins has been appointed head of BNY Mellon Markets in Europe, the Middle East and Africa (EMEA). He succeeds Richard Gill, who is retiring from the business after 22 years with the group.
Gill joined Bank of New York in 1995 as head of its spot FX trading team, before being appointed global co-head of FX trading and senior global markets officer in Europe at BNY Mellon. He joined the bank from First National Bank of Chicago, where he worked for four years.
Market sources tell Profit & Loss that Bank of New York Mellon has continued to add to its ranks as it builds out its FX business.
The sources says the bank has hired Richard Grover, Huazhang Luo and Patricia Muchinsky for its e-FX teams in London and New York. Grover and Luo will report to Jeff Leal, global head of e-FX, Muchinsky reports to Jason Vitale, COO, Markets at BNY Mellon.
Grover joins BNY Mellon from NAB in London, Luo from BNP Paribas and Muchinsky is joining the bank from V3 in Chicago.
Market sources tell Profit & Loss that James Taylor, executive director at JP Morgan, has left the bank and is heading to BNY Mellon.
Taylor was most recently heading JPM’s macro fixed income market structure team, having shifted from his role as head of international rates execution services at the bank. Taylor joined JP Morgan in 2009 as head of e-FICC sales for Europe, having moved from a similar role at Deutsche Bank. Prior to Deutsche, Taylor was on the e-FX sales team at Barclays.
BNY Mellon has appointed Michelle Neal, CEO of BNY Mellon Markets Group, to the company's Executive Committee.
"Michelle's leadership experience and her expertise across the entire spectrum of Markets’ activities will be a valuable addition to our Executive Committee. BNY Mellon Markets continues to be a significant growth area for the company as our clients look to us for solutions to help them navigate the changing regulatory and market landscape," says Gerald Hassell, CEO of BNY Mellon.
Neal joined the company in the fourth quarter of 2015, after leaving Deutsche Bank, where she was the global head of listed derivatives, markets clearing and fixed income market structure.
Profit & Loss understands that Darren Boulos has joined Bank of New York Mellon as head of FX sales and trading for Asia Pacific.
Boulos was last at Deutsche Bank in Sydney where he closed out a nine-year career in the role of head of FIC for Asia. Boulos joined Deutsche as head of short term interest rate trading in 2006, before moving to run FX in Sydney from 2010 to 2012.
Prior to Deutsche he had spells at RBC and Credit Suisse in Sydney, Singapore and Tokyo.
Market and regulatory reforms are forcing buy side firms to look for new ways of accessing collateral, funding and liquidity, according to a new report from BNY Mellon and PWC.
Based on a survey that 120 buy side respondents with a combined $12 trillion in AUM participated in, the report claims that “access to high-quality collateral, funding and liquidity is not only a pressing concern, but has emerged as the essential new performance driver for the buy side”.
The current challenge with accessing these is twofold.
Patrick O’Brien has left his position as managing director, foreign exchange, at BNY Mellon.
Based in Pittsburgh, O’Brien had been with BNY Mellon since 2006. Profit & Loss understands that his departure is part of a broader move by the custodian bank to consolidate its FX dealing room in New York.
Prior to working at BNY Mellon, O’Brien spent just under two years as a senior vice president, FX trading, at National Australia Bank (NAB) in New York.
Before joining NAB in 2005, O’Brien was a manager and chief dealer for spot FX at Commonwealth Bank for twelve years, operating out of both New York and Sydney during that time.
BNY Mellon is facing further legal action over activities in its FX business as a class action suit has been filed in New York claiming it “charged excessive rates and mark ups” on ADR conversions.
The bank has previously settled similar cases surrounding so-called Standing Instruction trades with both US authorities and private claimants, however those cases were not brought in regard to the ADR business. As was the case with SI trades, the Plaintiffs claim that BNY Mellon “selected a transaction rate at or near the rate at which the currency traded that day that was virtually the worst for the ERISA Plans”.
BNY Mellon is launching an FX prime brokerage service for its institutional clients.
The custodian bank announced in a release today that the new service will launch “in early 2018”.
In the release, BNY Mellon says the service will allow institutional clients to access a significant new source of FX liquidity while helping streamline and reduce operational expenses, including legal and onboarding costs, as well as generating substantial capital and netting gains.
Users of the service will be able to transact a suite of FX products while also having access to pre- and post-trade services in addition to BNY Mellon’s collateral, funding and liquidity capabilities.
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.
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.
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 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.
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.”
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.
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.
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.
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.