The Los Angeles County Employees Retirement Association has ended directing some currency trades to Bank of New York Mellon, The Wall Street Journal reports. The move comes as the Los Angeles fund alleged that BNY Mellon was not allowed to profit from undisclosed FX transactions.
The fund accused that it expected BNY Mellon to be a fiduciary and provide real-time prices in handling currency transactions that the fund uses to facilitate its investments in foreign securities. All the claims were denied by BNY, saying that its contract with the fund states its role is that of a principal, which trades against the fund and its investment managers.
Click here for the story from The Wall Street Journal.