BNY Mellon Proposes New FX Pricing Model

The world’s largest custodial services provider Bank of New York Mellon Corp. is providing a new pricing model to some of its customers.

The world’s largest custodial services provider Bank of New York Mellon Corp. (BNY Mellon) is providing a new pricing model to some of its customers, Bloomberg reports. The bank has been accused by state and federal officials of cheating New York City pension funds on foreign exchange transactions and pocketing more than $2 billion over 10 years at the expense of clients.

The bank is planning to apply fixed margins over benchmark currency rates while automatically carrying out currency trades for custody clients. The bank will price the trades at specific times, instead of picking a rate that is favorable for the bank at the day’s closing.

Click here for the story from Bloomberg.