BNY Mellon Rolls Out Price Verification Service for Hedge Funds
December 14, 2009
The alternative investment services unit of Bank of New York Mellon said Monday that it is launching a service that will confirm the values of assets that hedge funds hold.
The service will validate hedge funds' position records, verifying the prices of a fund's securities, as they are reported to prime brokers, custodians, trustees and agent backs.
The financial services company said the service will be highly automated, providing pricing and validation across 50 different types of assets. Relationships with 15 prime brokers and counterparties will make the service possible, the company said.
“Hedge fund clients are telling us their investors are demanding an independent validation of their holdings. The price verification (and) asset validation service helps address this need, which in turn helps hedge funds retain and grow their investor base,” said Brian Ruane, chief executive officer of BNY Mellon Alternative Investment Services, in a prepared statement.
The service currently can reconcile more than 27,000 client investment positions, with a total market value in excess of $24 billion.
BNY Mellon Alternative Investment Services is a hedge fund administrator with more than $225 billion in assets under administration.
Separately, the Wall Street Journal reported over the weekend that the chief executive of Bank of New York Mellon, Robert P. Kelly, "has emerged as the front-runner" to succeed Kenneth Lewis as the head of Bank of America. The two sides are discussing compensation, the Journal said.
Bank of New York Mellon has $20.7 trillion in assets under custody and administration, $926 billion in assets under management, services $11.8 trillion in outstanding debt, and processes global payments averaging $1.8 trillion per day.
