BNY Mellon has green-lighted a new initiative to ease confusion related to futures and derivatives trades for the global asset manager and securities services firm’s institutional client base.

In an announcement today, the New York-based conglomerate said it has created a new company to help clear trades for the wealthy investor class. Its newly appointed CEO Sanjay Kannambadi will head BNY Mellon Clearing, the new entity, which is registered by the U.S. Commodity Futures Commission and member of the National Futures Association.

Prior to the recent appointment, Kannambadi previously served as the head of BNY Mellon’s office of innovation, a division liable for the “development and commercialization of new products and services.” He will report directly to BNY Mellon Senior Executive VP and CEO of Alternatives and Broker-Dealer Services Art Certosimo, the June 22 press release said.

"BNY Mellon Clearing will provide clients with our extensive operations, technology, risk, finance and compliance capabilities, along with access to exchanges and clearinghouses around the world," Kannambadi, said in the release, while acknowledging that “rapid” changes are anticipated in the clearing and settlement processes for derivative focused investing from an institutional standpoint.  

Gerald Hassell, president of BNY Mellon, called the clearing business “a logical extension of [its] business model” because of its ability to “meet the growing needs of clients who trade derivatives and are seeking a global clearing partner.”

The Bank of New York Mellon Corporation subsidiary effectively joins the international financial services firm’s enormous family, which is currently comprised of more than $22.3 trillion in assets under custody and roughly $1.1 trillion in assets under management, the statement said.

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