Massachusetts securities regulator, William Galvin, has said he will investigate the software glitch which occurred at BNY Mellon which disrupted the pricing on funds worth billions of dollars.
Galvin, who oversees the Massachusetts Securities Division, stated he has sent letters to BNY Mellon and six of the largest mutual funds allegedly affected by the glitch, seeking information into what occurred and its impact on individual investors.
“In the warp-speed of trading these days computer problems can happen. But the fallout that seems only to affect large financial institutions can hit the average investor looking at his and her retirement money,” Galvin said in a statement.
He also said the inquiry will be initially focused on the mutual funds and exchange traded funds (ETFs) run by Goldman Sachs, Deutsche Bank, First Trust Advisors, Guggenheim Investments, Prudential Investments and Federated Investors.
The fund accounting platform used by BNY Mellon, and operated by SunGard, collapsed last month, affecting the pricing of funds worth over $400 billion.
According to First Trust Advisors, it stated the net asset value of some of its funds contained errors greater than 1%.
BNY Mellon declined to comment.
Massachusetts Regulator to Investigate BNY Mellon Software Glitch
Massachusetts securities regulator, William Galvin, has said he will investigate the software glitch which occurred at BNY Mellon which disrupted the pricing on funds worth billions of dollars.