October 13, 2015

BNY Mellon Automates Process for Broker-Dealers to Notify Mutual Fund Complexes of Upcoming Large Trades

Industry Benefits by Improving Cash Flow Management


NEW YORK, Oct. 13, 2015 /PRNewswire/ -- BNY Mellon, a global leader in investment management and investment services, is among the first U.S. transfer agency providers to automate the notifications that broker-dealers send to mutual fund complexes when large trades in their funds are imminent.

"This automation process reduces the communications period for the broker-dealers and the fund complexes, lowers the probability of an error, and streamlines the overall process," said Michael DeNofrio, managing director and global head of transfer agency services for BNY Mellon.  "The industry need for automating this process has become more acute as mutual fund complexes have been lowering the threshold for requiring advance notification.  In the past, advance notification was required for trades of at least one million dollars.  Now, we are seeing fund complexes ask for advance notification for trades in the $100,000 range."

Fund complexes require advance notification of large trades so they can manage their cash flow efficiently.  The fund managers require cash when broker-dealers sell shares in mutual funds.  The managers also need to prepare for the cash inflows that result when broker-dealers buy shares in the funds on behalf of their investors.

Prior to the introduction of the new service, broker-dealers would alert the transfer agent by phone or email that the trade would be coming, and the transfer agent would then contact the mutual fund manager.   Under the new system, the broker-dealer signs in to the BNY Mellon AdvisorCentral web portal and provides detailed information about the upcoming trade, including the expected trade date, trade amount, and the trade settlement timeframe.

The mutual fund complex and BNY Mellon, as the transfer agent, receive the information simultaneously. The AdvisorCentral web portal is commonly used in the industry by broker-dealers and financial advisors seeking easy access to consolidated mutual fund and 529 plan data.  

"This is another example of where our market leadership provides opportunities to be the industry's productivity and technology leader, with the highest automation and lowest costs," noted DeNofrio.

BNY Mellon is ranked as the largest third party provider of subaccounting services and the second largest provider of transfer agency services (based on accounts) in the U.S., per the 2015 Mutual Fund Service Guide.

BNY Mellon's Asset Servicing business supports institutional investors in today's fast-evolving markets, safeguarding assets and enhancing the management and administration of client investments through services that process, monitor and measure data from around the world. It leverages its global footprint and local expertise to deliver insight and solutions across every stage of the investment lifecycle.

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of June 30, 2015, BNY Mellon had $28.6 trillion in assets under custody and/or administration, and $1.7 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.

Contact:                                    
Mike Dunn                                      
+1 732 667 2678                            
mike.g.dunn@bnymellon.com        

SOURCE BNY Mellon