BNY Mellon creates new subsidiary for government clearance and tri-party repo

NEW YORKMay 31, 2017 /PRNewswire/ — The Bank of New York Mellon Corporation (“BNY Mellon”) (NYSE: BK) has formed a wholly-owned subsidiary, BNY Mellon Government Securities Services Corp., designed to further enhance capabilities, governance, transparency and resiliency in the U.S. government securities clearance and U.S. tri-party repo businesses. BNY Mellon Government Securities Services will be headquartered in New York.

“BNY Mellon recognizes its important role and responsibility in the financial industry for the smooth and reliable functioning of this critical market,” said Gerald Hassell, Chairman and Chief Executive Officer of BNY Mellon. “As the government securities clearing market has evolved, we have continued to invest in technology to increase capacity and enhance services to meet client and market demands. Our clients are also evolving, and we will continue to develop functionality to meet their changing needs. This subsidiary establishes a governance structure and operating model that will enable expert oversight for this important business.”

The Board of Directors of BNY Mellon Government Securities Services will combine BNY Mellon’s deep management expertise with the following three distinguished independent directors:

  • Elizabeth Robinson (Chair), former Global Treasurer and partner of Goldman Sachs, and previous board member of Goldman Sachs Bank USA, who currently serves as a member of the Board of Directors of BNY Mellon and Russell Reynolds Associates;
  • Richard Ketchum, who served as Chairman and Chief Executive Officer of the Financial Industry Regulatory Authority (FINRA), CEO of NYSE Regulation, Inc. and Chief Regulatory Officer of the NYSE. Ketchum also served as director of the division of Market Regulation at the SEC, had previous leadership roles at Citigroup, Inc. and NASDAQ, and currently serves as a member of the Board of Directors of MarketAxess Holdings, Inc.; and
  • David Weisbrod, who served as U.S. Country Head for the London Stock Exchange Group, and CEO of LCH.Clearnet LLC, the U.S. division of London-based LCH.Clearnet Group Ltd. Weisbrod was formerly Vice Chairman of Risk Management at JPMorgan, a former member of the Federal Reserve Bank of New York Payments Risk Committee and a former member of the board of the Depository Trust & Clearing Corp.

BNY Mellon Government Securities Services has appointed Brian Ruane as Chief Executive Officer to lead management and operations of the subsidiary, along with Andrea Pfenning, who will assume the role of President and Chief Operating Officer. “The creation of BNY Mellon Government Securities Services further supports BNY Mellon’s long-term track record of investing in this business to deliver continuous improvements in operational and technology resiliency,” said Ruane. “This is an important business and a strategic differentiator for BNY Mellon, and with the establishment of BNY Mellon Government Securities Services, we will continue to enhance functionality to meet future client needs.”

In addition to the three independent directors, the BNY Mellon Government Securities Services Board of Directors will also include BNY Mellon management team leaders Ruane, Pfenning, Michelle Neal, President, BNY Mellon Markets, and James Wiener, Senior Executive Vice President and Chief Risk Officer.

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