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BNY Mellon to Build FX Pricing & Trading Engine in Singapore

Zacks Equity Research

The Bank of New York Mellon Corporation BK recently announced its plan to set up an FX pricing and trading engine in Singapore. This will be in collaboration with the Monetary Authority of Singapore (MAS).

The bank will create a low-latency electronic FX infrastructure, which will offer its clients efficient price-discovery services and improved execution quality. Though the operations will be initially conducted only for spot contracts, the same will be later extended to deliverable and non-deliverable forwards and swaps.

Darren Boulos, head of FX Sales and Trading in Asia-Pacific at BNY Mellon, stated that the recent development will further enhance the company’s global FX capabilities, on which it has been concentrating for the past four years. Local support will also help offer additional liquidity to BNY Mellon’s clients.

BNY Mellon already has an FX presence in Singapore, with a dedicated FX custody trading desk set up in 2019. In the same year, the bank relocated its Short-Term Interest Rate Trading (STIRT) business from Hong Kong to Singapore as well as set up an options trading desk.

Singapore is increasingly become the hub of electronic FX trading system, with major global banks, like JPMorgan JPM, Citigroup C, UBS Group AG and BNP Paribas BNPQY, already engaged in FX operations in the region.

BNY Mellon has been trying to establish its foothold in foreign markets. Given the solid growth potential of overseas securities markets and a rise in complex new securities, the industry has robust long-term prospects.

Shares of this Zacks Rank #3 (Hold) company have lost 21.9%, so far this year, compared with the 30.4% decline recorded by the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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