By Kirsten Grind 

Executives at Bank of New York Mellon Corp. are racing against the clock to make it through a backlog of pricing issues before the markets open Monday morning.

More than 100 executives at the bank worked through the weekend to correct a software glitch that has complicated pricing for hundreds of mutual funds and exchange-traded funds since last Monday. The problem stemmed from a SunGard system used by BNY Mellon that became "corrupted" last weekend after an upgrade, SunGard said in a statement Thursday. A SunGard spokesman didn't immediately return a request for comment Sunday.

By Sunday midday, the SunGard system was performing properly and BNY Mellon had calculated the net asset values for all funds through last Wednesday, with the exception of one company, the bank said in a statement Sunday afternoon. The largest fund custodian in the world by assets, BNY Mellon provides accounting services for money managers.

"SunGard's system is restored and we have made significant progress over the weekend to process the backlog," a BNY Mellon spokesman said.

But the bank was still working through a backlog from Thursday and Friday, and it was unclear whether it would be able to complete the task by the time the market opened Monday, said a person familiar with the situation.

The bank, along with fund companies, regulators and exchanges all hoped to start the week having made it through the issue, this person said.

The outage has been unprecedented for money-management firms, who strive to provide investors with accurate pricing for their funds. In its first attempt at quantifying the outage, BNY Mellon said over the weekend that 20 mutual-fund companies had been affected and 26 providers of exchange-traded funds.

Fund companies affected include Goldman Sachs Group Inc., Federated Investors and Invesco PowerShares. They have all had to rely on backup methods for calculating asset values, and are now reconciling the values they published last week with the new data provided by BNY Mellon. BNY Mellon said in a statement Sunday it is also "using alternative methods to address the backlog from SunGard's system failures this week."

NYSE Group, a unit of Intercontinental Exchange Inc., Nasdaq OMX Group Inc. and BATS Global Markets Inc. declined to comment.

Bradley Hope contributed to this article.

Write to Kirsten Grind at kirsten.grind@wsj.com

 

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(END) Dow Jones Newswires

August 30, 2015 15:07 ET (19:07 GMT)

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