BNY Mellon is entering the FX prime brokerage service arena, taking on rivals such as Citi, Deutsche Bank and JP Morgan.
The investment bank is looking to allow its clients to access a new source of much-needed liquidity in the FX space.
The service has been spearheaded by Jason Vitale, Deutsche Bank’s former co-head of listed derivatives, clearing and FX prime brokerage, who joined BNY Mellon in May.
Michael Cooper, who joins BNY Mellon again from Deutsche Bank, will lead the business, which will be launched in early 2018.
"We're launching a traditional prime brokerage service with a twist. By leveraging BNY Mellon's leadership in collateral management, funding and liquidity, clients will benefit from a fully-integrated and complete FX service," said Vitale.
BNY Mellon said clients will be able to transact a range of FX products while also enjoying accessing pre- and post-trade services, such as collateral, funding and liquidity management.
"BNY Mellon's new service benefits from the combination of a highly-rated counterparty with the capacity of a market-leading custodial bank. It opens up access to multiple new sources of liquidity for new and existing clients.
"FXPB is the ideal tool for those looking to balance the challenges of the uncleared margin regime with the need to deliver better execution on behalf of their clients," said Cooper.