NEW YORK, Oct. 13, 2015 /PRNewswire/ -- BNY Mellon, a
global leader in investment management and investment services, is
among the first U.S. transfer agency providers to automate the
notifications that broker-dealers send to mutual fund complexes
when large trades in their funds are imminent.
"This automation process reduces the communications period for
the broker-dealers and the fund complexes, lowers the probability
of an error, and streamlines the overall process," said
Michael DeNofrio, managing director
and global head of transfer agency services for BNY Mellon.
"The industry need for automating this process has become more
acute as mutual fund complexes have been lowering the threshold for
requiring advance notification. In the past, advance
notification was required for trades of at least one million dollars. Now, we are seeing
fund complexes ask for advance notification for trades in the
$100,000 range."
Fund complexes require advance notification of large trades so
they can manage their cash flow efficiently. The fund
managers require cash when broker-dealers sell shares in mutual
funds. The managers also need to prepare for the cash inflows
that result when broker-dealers buy shares in the funds on behalf
of their investors.
Prior to the introduction of the new service, broker-dealers
would alert the transfer agent by phone or email that the trade
would be coming, and the transfer agent would then contact the
mutual fund manager. Under the new system, the
broker-dealer signs in to the BNY Mellon AdvisorCentral web portal
and provides detailed information about the upcoming trade,
including the expected trade date, trade amount, and the trade
settlement timeframe.
The mutual fund complex and BNY Mellon, as the transfer agent,
receive the information simultaneously. The AdvisorCentral web
portal is commonly used in the industry by broker-dealers and
financial advisors seeking easy access to consolidated mutual fund
and 529 plan data.
"This is another example of where our market leadership provides
opportunities to be the industry's productivity and technology
leader, with the highest automation and lowest costs," noted
DeNofrio.
BNY Mellon is ranked as the largest third party provider of
subaccounting services and the second largest provider of transfer
agency services (based on accounts) in the U.S., per the 2015
Mutual Fund Service Guide.
BNY Mellon's Asset Servicing business supports institutional
investors in today's fast-evolving markets, safeguarding assets and
enhancing the management and administration of client investments
through services that process, monitor and measure data from around
the world. It leverages its global footprint and local expertise to
deliver insight and solutions across every stage of the investment
lifecycle.
BNY Mellon is a global investments company dedicated to helping
its clients manage and service their financial assets throughout
the investment lifecycle. Whether providing financial services for
institutions, corporations or individual investors, BNY Mellon
delivers informed investment management and investment services in
35 countries and more than 100 markets. As of June 30, 2015, BNY Mellon had $28.6 trillion in assets under custody and/or
administration, and $1.7 trillion in
assets under management. BNY Mellon can act as a single point of
contact for clients looking to create, trade, hold, manage,
service, distribute or restructure investments. BNY Mellon is the
corporate brand of The Bank of New York Mellon Corporation (NYSE:
BK). Additional information is available on
www.bnymellon.com. Follow us on Twitter @BNYMellon or visit
our newsroom at www.bnymellon.com/newsroom for the latest
company news.
Contact:
Mike
Dunn
+1 732 667
2678
mike.g.dunn@bnymellon.com
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SOURCE BNY Mellon