BNY Mellon Offers New FX Pricing

Custody bank’s alternative pricing model comes amid lawsuits.

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.

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