BNY Mellon Offers Alternative Foreign-Exchange Pricing
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Bank of New York Mellon Corp., accused by state and federal officials of defrauding public pension funds on foreign-exchange trades, is offering some of those customers a new pricing model.
The bank has proposed applying fixed margins over benchmark currency rates when automatically executing currency trades for custody clients, said Mary Jane Wardlow, a spokeswoman for the Employees Retirement System of Texas. The bank would price the trades at specific times, rather than pick a rate that’s favorable for the bank at the end of the day.