Bank of New York Mellon closing its U.S. derivatives clearing business.
“We are exiting the derivatives clearing business in the United States due to market and regulatory factors that will limit our ability to grow the business in the future,” according to a BNY Mellon statement.
The business, based in New York, “hasn't been profitable” for BNY Mellon, spokesman Tim Steele said.
BNY Mellon will continue its derivatives clearing business in Frankfurt, which Mr. Steele said was a “core business” for the firm in Germany. Mr. Steele said BNY Mellon expects to wind down the U.S. derivatives clearing business “over the next couple of months to six months” to reduce the impact on U.S. clients.
Mr. Steele was unable to say how much in assets was handled through the U.S. business.
