NASDAQ Adds BNY Mellon as Settlement Bank in Europe

NASDAQ OMX has added BNY Mellon as one of the settlement banks for the exchange’s central counterparty clearing service in Europe.

NASDAQ will use BNY Mellon for settlements in US dollars, euros and sterling, and the bank will support the needs of both the CCP and buy-side clients, as new clearing requirements come into effect for OTC derivative transactions, which requires the processing of margin. The partnership between the bank and exchange will commence in December.

“We chose BNY Mellon because of its financial strength and reputation for reliable customer service and attention to detail,” said Johan Ruden, president of NASDAQ OMX Clearing AB. “BNY Mellon is a strong addition to our group of settlement banks which are providing clearing services on our European stock exchanges. This is central to our strategy of building a competitive model which will increase liquidity and lower costs for investors.”

Dominic Broom, BNY Mellon’s head of EMEA sales and relationship management, treasury services, added: “The move to CCPs is a radical shift in the way the industry does business and we are at the forefront of this key regulatory change. In addition to providing settlement services for CCPs, we are also helping clients optimize and administer their collateral as part of the support we can offer them across the whole breadth of the investment lifecycle.”