Bank of New York Mellon is closing its derivatives sales and trading business, based in New York.
The business, which serves mainly institutional clients, is part of BNY Mellon’s global markets group. The rest of that group provides foreign exchange and capital markets services, which are unaffected by the closing announced late Tuesday, spokesman Ron Sommer said.
No date was set to wind down the business, Mr. Sommer said, although given the nature of derivatives services, it will be “a considerable amount of time.” He said the business was a “small portion” of the total global markets business but was unable to provide specific revenue and volume information.
The decision to close the business follows the consolidation in June of BNY Mellon’s global markets, collateral services and prime services business under one unit, BNY Mellon Markets Group, overseen by Curtis Arledge, vice chairman and CEO of investment management, with Kurt D. Woetzel, CEO of global collateral services, serving as president of the group. Mr. Sommer said part of the reason for the consolidation was to help the company run more efficiently.
“We just decided to end this part of the (global markets) business,” Mr. Sommer said. “Ultimately, it was a business decision. It’s a challenging environment, in part because of the current regulatory environment.”
The derivatives sales and trading business is the latest unit to be closed by BNY Mellon this year. In March, the company announced it was closing its transition management business.