BNY Mellon will wind up its futures and derivatives clearing subsidiary in Ireland, having received approval from the financial regulator to do so. The legal entity, which was set up in June last year, counted former Finance Minister Charlie McCreevy as among its directors.
In a statement confirming it had received approval from the financial regulator to de-regulate BNY Mellon Clearing International Limited, BNY Mellon said it remains committed to offering derivatives clearing services to clients but has established that it does not need a separate legal entity to do so. BNY Mellon Clearing International is taking the necessary steps to effect an orderly wind up of the legal entity, the company said.
BNY Mellon Clearing International was created to clear futures and derivatives trades on behalf of institutional clients in Europe, Middle East and Africa. Headquartered in Dublin, the business, BNY Mellon Clearing is the first MiFID authorized futures and derivatives clearing entity in Ireland. It was set up to provide solutions to clear these products as over the counter (OTC) swaps move into control clearing. These functions will now fall to other BNY Mellon subsidiaries in Ireland and Europe, Global Custodian understands.
Tim Murphy was appointed to serve as head of BNY Mellon Clearing International for Europe, Middle East and Africa. BNY Mellon said the impact of the wind up on the staff is minimal as some positions are expected to be transferred.
(JDC)