The Bank of New York Mellon Corporation (BNY), a global financial services company, engages in banking, investment advisory and other financial activities.
The company’s two principal U.S. banking subsidiaries engage in trust and custody activities, investment management services, banking services, and various securities-related activities. The company’s two principal U.S. banking subsidiaries are:
The Bank of New York Mellon, a New York state-chartered bank, which houses the company’s Securit...
The Bank of New York Mellon Corporation (BNY), a global financial services company, engages in banking, investment advisory and other financial activities.
The company’s two principal U.S. banking subsidiaries engage in trust and custody activities, investment management services, banking services, and various securities-related activities. The company’s two principal U.S. banking subsidiaries are:
The Bank of New York Mellon, a New York state-chartered bank, which houses the company’s Securities Services businesses, including Asset Servicing and Issuer Services and certain Market and Wealth Services businesses, including Treasury Services and Clearance and Collateral Management, as well as the bank-advised business of Investment Management; and
BNY Mellon, National Association (‘BNY Mellon, N.A.’), a national bank, which houses the company’s Wealth Management business and certain activities of the company’s Pershing businesses.
The company has four other U.S. bank and/or trust company subsidiaries concentrating on trust products and services across the United States: The Bank of New York Mellon Trust Company, National Association, BNY Mellon Trust of Delaware, BNY Mellon Investment Servicing Trust Company, and BNY Mellon Trust Company of Illinois. Most of the company’s Investment Management business and Pershing businesses are direct or indirect non-bank subsidiaries of BNY.
Each of the company’s bank and trust company subsidiaries is subject to regulation by the applicable bank regulatory authority. The deposits of the company’s U.S. banking subsidiaries are insured by the Federal Deposit Insurance Corporation to the extent provided by law.
BNY’s banking subsidiaries outside the United States are subject to regulation by non-U.S. regulatory authorities in addition to the Board of Governors of the Federal Reserve System (the ‘Federal Reserve’). The Bank of New York Mellon SA/NV (‘BNY SA/NV’) is the main banking subsidiary of The Bank of New York Mellon in continental Europe. It is authorized and regulated as a credit institution by the European Central Bank and the National Bank of Belgium under the Single Supervisory Mechanism and is also supervised by the Belgian Financial Services and Markets Authority for conduct of business rules. BNY SA/NV has its principal office in Brussels and branches in Amsterdam, the Netherlands; Copenhagen, Denmark; Dublin, Ireland; Frankfurt, Germany; the City of Luxembourg, Luxembourg; Madrid, Spain; Milan, Italy; Paris, France; and Wroclaw, Poland. BNY SA/NV’s activities are in the Securities Services and Market and Wealth Services segments of BNY with a focus on global custody, asset servicing and collateral management.
Segments
The company divides its businesses into three principal business segments: Securities Services, Market and Wealth Services and Investment and Wealth Management. The company also has an Other segment, which includes the leasing portfolio, corporate treasury activities (including the company’s securities portfolio), derivatives and other trading activity, corporate and bank-owned life insurance, tax credit investments and other corporate investments and certain business exits.
Securities Services segment
The Securities Services business segment consists of two distinct lines of business, Asset Servicing and Issuer Services, which provide business solutions across the transaction lifecycle to the company’s global asset owner and asset manager clients. The company is one of the leading global investment services providers.
The Asset Servicing business provides a comprehensive suite of solutions. The company is one of the largest global custody, fund administrator and front-to-back outsourcing partners. The company offers services for the safekeeping of assets in capital markets globally, as well as fund accounting services, exchange-traded funds servicing, transfer agency, trust and depository, front-to-back capabilities and data and analytics solutions for the company’s clients. The company delivers foreign exchange, and securities lending and financing solutions, on both an agency and principal basis. The company’s agency securities lending program is one of the largest lenders of the U.S. and non-U.S. securities, servicing a lendable asset pool of approximately $5.4 trillion in 34 separate markets. The company’s market-leading liquidity services portal enables cash investments for institutional clients and includes fund research and analytics.
The company’s Digital Asset Custody platform offers custody and administration services for Bitcoin and Ether for select U.S. institutional clients. The company’s Digital Assets Funds Services provides accounting and administration, transfer agency and ETF services to digital asset funds. The company continues to develop its digital asset capabilities working closely with clients to address their evolving digital asset needs.
The Issuer Services business includes Corporate Trust and Depositary Receipts. The company’s Corporate Trust business delivers a full range of issuer and related investor services, including trustee, paying agency, fiduciary, escrow and other financial services. The company is a leading provider to the debt capital markets, providing customized and market-driven solutions to investors, bondholders and lenders. The company’s Depositary Receipts business drives global investing by providing servicing and value-added solutions that enable, facilitate and enhance cross-border trading, clearing, settlement and ownership. The company is one of the largest providers of depositary receipts services in the world, partnering with leading companies from more than 50 countries.
Market and Wealth Services segment
The Market and Wealth Services business segment consists of three distinct lines of business, Pershing, Treasury Services and Clearance and Collateral Management, which provide business services and technology solutions to entities including financial institutions, corporations, foundations and endowments, public funds and government agencies.
Pershing provides execution, clearing, custody, business and technology solutions, delivering operational support to broker-dealers, wealth managers and registered investment advisors (‘RIAs’) globally.
The company’s Treasury Services business is a leading provider of global payments, liquidity management and trade finance services for financial institutions, corporations and the public sector.
The company’s Clearance and Collateral Management business clears and settles equity and fixed-income transactions globally and serves as custodian for tri-party repo collateral worldwide. The company is the primary provider of the U.S. government securities clearance and a provider of non-U.S. government securities clearance. The company’s collateral services include collateral management, administration and segregation. The company offers innovative solutions and industry expertise which help financial institutions and institutional investors with their financing, risk and balance sheet challenges. The company is a leading provider of tri-party collateral management services.
Investment and Wealth Management segment
Investment and Wealth Management business segment consists of two distinct lines of business, Investment Management and Wealth Management.
Investment Management is a leading global asset manager and consists of seven specialist investment firms and a global distribution platform to deliver a diversified range of investment capabilities to institutional and retail clients globally.
The company’s Investment Management model provides specialist expertise from seven investment firms offering solutions across major asset classes, backed by the strength, scale and proven stewardship of BNY. Each investment firm has its own individual culture, investment philosophy and proprietary investment process. This approach brings the company’s clients clear, independent thinking from highly experienced investment professionals.
The investment firms offer a broad range of actively managed equity, fixed income, multi-asset and liability-driven investments, along with passive products and cash management. The company’s six majority-owned investment firms are: ARX, Dreyfus, Insight Investment, Mellon, Newton Investment Management and Walter Scott. BNY owns a noncontrolling interest in Siguler Guff.
Investment Management has multiple global distribution entities, which are responsible for distributing the investment solutions developed and managed by the investment firms, as well as the management and distribution of the company’s U.S. mutual funds, ETFs and certain offshore money market funds.
Wealth Management provides investment management, custody, wealth and estate planning, private banking services, investment servicing and information management. Wealth Management has various offices in the U.S. and internationally.
Wealth Management clients include individuals, families and institutions. Institutions include family offices, charitable gift programs and endowments and foundations. The company works with clients to build, manage and sustain wealth across generations and market cycles.
The wealth business differentiates itself with a comprehensive wealth management framework called Active Wealth that seeks to empower clients to build and sustain long-term wealth.
The results of the Investment and Wealth Management business segment are driven by a blend of daily, monthly and quarterly AUM by product type.
Other segment
The Other segment primarily includes: the leasing portfolio; corporate treasury activities, including the company’s securities portfolio; derivatives and other trading activity; corporate and bank-owned life insurance; tax credit investments and other corporate investments; and certain business exits.
International Operations
The company’s primary international activities consist of asset servicing in the company’s Securities Services business segment, global payment services in the company’s Market and Wealth Services business segment and investment management in the company’s Investment and Wealth Management business segment.
The company’s clients include central banks and sovereigns, financial institutions, asset managers, insurance companies, corporations, local authorities and high-net-worth individuals and family offices. Through the company’s global network of offices, the company has developed a deep understanding of local requirements and cultural needs, and the company prides itself on providing dedicated service through the company’s multilingual sales, marketing and client service teams.
The company is a leading global asset manager.
In Europe, the company maintain capabilities to service Undertakings for Collective Investment in Transferable Securities and alternative investment funds. The company offers a full range of tailored solutions for investment companies, financial institutions and institutional investors across most European markets.
The company is a provider of non-U.S. government securities, fixed income and equities clearance, settling securities transactions directly in European markets, and using a high-quality and established network of local agents in non-European markets.
The company has extensive experience providing trade and cash services to financial institutions and central banks outside of the U.S. In addition, the company offers a broad range of servicing and fiduciary products to financial institutions, corporations and central banks. In emerging markets, the company leads with custody, global payments and issuer services, introducing other products as the markets mature. For more established markets, the company’s focus is on global investment services.
The company is also a full-service global provider of foreign exchange services, actively trading in over 100 of the world’s currencies. The company serves clients from trading desks located in Europe, Asia and North America.
Investment Securities
As of December 31, 2024, the company’s investment portfolio included agency RMBS, U.S. treasury, agency commercial mortgage-backed securities (‘MBS’); collateralized loan obligations (‘CLOs’); foreign covered bonds; U.S. government agencies; non-agency commercial MBS; non-agency RMBS; other asset-backed securities; and other securities.
Loans
As of December 31, 2024, the company’s loan portfolio included financial institutions; commercial; wealth management loans; wealth management mortgages; commercial real estate; lease financings; other residential mortgages; overdrafts; capital call financing; other; and margin loans.
Deposits
The company receives client deposits through the businesses in the Securities Services, Market and Wealth Services and Investment and Wealth Management segments and the company relies on those deposits as a low-cost and stable source of funding.
Supervision and Regulation
The FDI Act, as amended by the Federal Deposit Insurance Corporation Improvement Act of 1991 (‘FDICIA’), requires the Agencies to take ‘prompt corrective action’ in respect of IDIs that do not meet specified capital requirements. FDICIA establishes five capital categories for FDIC-insured banks: ‘well capitalized,’ ‘adequately capitalized,’ ‘undercapitalized,’ ‘significantly undercapitalized,’ and ‘critically undercapitalized.’ The FDI Act imposes progressively more restrictive constraints on operations, management and capital distributions the less capital the institution holds. While these regulations apply only to banks, such as The Bank of New York Mellon and BNY Mellon, N.A., the Federal Reserve is authorized to take appropriate action against the parent BHC, such as the company, based on the undercapitalized status of any banking subsidiary.
BNY is subject to the U.S. LCR Rule, which is designed to ensure that BNY and certain domestic bank subsidiaries maintain an adequate level of unencumbered High-quality liquid assets (HQLA) equal to their expected net cash outflow for a 30-day time horizon under an acute liquidity stress scenario. As of Dec. 31, 2024, the company and its domestic bank subsidiaries were in compliance with applicable LCR requirements.
The Agencies have issued a final NSFR rule that implements a quantitative long-term liquidity requirement applicable to large and internationally active banking organizations, including BNY. Under the final rule, BNY’s NSFR is expressed as a ratio of its available stable funding to its required stable funding amount, and BNY is required to maintain an NSFR of 1.0. As of Dec. 31, 2024, BNY was in compliance with the NSFR rule.
The provisions of the Dodd-Frank Act commonly referred to as the ‘Volcker Rule’ prohibit ‘banking entities,’ including BNY, from engaging in proprietary trading and limit the company’s sponsorship of, and investments in, private equity and hedge funds (‘covered funds’), including the company’s ability to own or provide seed capital to covered funds. In addition, the Volcker Rule restricts the company from engaging in certain transactions with covered funds (including, without limitation, certain U.S. funds for which BNY acts as both sponsor/manager and custodian). These restrictions are subject to certain exceptions.
Title VII of the Dodd-Frank Act imposes a comprehensive regulatory structure on the OTC derivatives markets in which BNY operates, including requirements relating to the business conduct of dealers, trade reporting, margin and recordkeeping. Title VII also requires persons acting as swap dealers, including The Bank of New York Mellon, to register with the CFTC and become subject to the CFTC’s supervisory, examination and enforcement powers. Additionally, Title VII requires persons acting as security-based swap dealers to register with the SEC. The Bank of New York Mellon is registered as a security-based swap dealer.
In addition, because BNY is subject to supervision by the Federal Reserve, the company must comply with the U.S. prudential margin rules for variation and initial margin with respect to its OTC swap transactions. Furthermore, various BNY subsidiaries are also subject to OTC derivatives regulation by local authorities in Europe and Asia.
As required by the Dodd-Frank Act, large domestic financial institutions, such as BNY, are required to submit periodically to the Federal Reserve and the FDIC a plan – referred to as the 165(d) resolution plan – for their rapid and orderly resolution in the event of material financial distress or failure. In addition, certain large IDIs, such as The Bank of New York Mellon, are required to submit periodically to the FDIC a separate plan for resolution in the event of the institution’s failure. The public portions of these resolution plans are available on the Federal Reserve’s and FDIC’s websites. BNY also maintains a comprehensive recovery plan, which describes actions it could take to seek to avoid failure if faced with financial stress.
BNY and the other U.S. G-SIBs are also subject to heightened supervisory expectations for recovery and resolution preparedness under Federal Reserve rules and guidance. The Federal Reserve incorporates reviews of the company’s capabilities in respect of recovery and resolution preparedness as part of its ongoing supervision of BNY.
The NYSDFS requires financial institutions regulated by NYSDFS, including The Bank of New York Mellon, to establish a cybersecurity program, adopt a written cybersecurity policy, designate a chief information security officer, and have policies and procedures in place to ensure the security of information systems and non-public information accessible to, or held by, third parties. The NYSDFS rule also includes a variety of other requirements to protect the confidentiality, integrity and availability of information systems, as well as the annual delivery of a certificate of compliance.
Under the final rule, a BHC, state member bank or national bank, including the Parent, The Bank of New York Mellon and BNY Mellon, N.A., are required to notify the Federal Reserve or OCC, as applicable, within 36 hours of incidents that could result in the banking organization’s inability to deliver services to a material portion of its customer base, disrupt the banking organization’s lines of businesses the failure of which would result in material losses, or disrupt operations the failure of which would threaten the financial stability of the U.S.
The company’s U.S. banking subsidiaries, including The Bank of New York Mellon and BNY Mellon, N.A., accept deposits, and those deposits have the benefit of FDIC insurance up to the applicable limit.
For larger institutions, such as The Bank of New York Mellon and BNY Mellon, N.A., assessments are determined based on CAMELS ratings and forward-looking financial measures to calculate the assessment rate, which is subject to adjustments by the FDIC, and the assessment base.
Section 956 of the Dodd-Frank Act requires federal regulators to prescribe regulations or guidelines regarding incentive-based compensation practices at certain financial institutions, including BNY.
The USA PATRIOT Act of 2001 contains numerous AML requirements for financial institutions that are applicable to BNY’s bank, broker-dealer and investment adviser subsidiaries and mutual funds and private investment companies advised or sponsored by the company’s subsidiaries.
The privacy provisions of the Gramm-Leach-Bliley Act generally prohibit financial institutions, including BNY, from disclosing nonpublic personal financial information of consumer customers to third parties for certain purposes (primarily marketing) unless customers have the opportunity to opt out of the disclosure. The Fair Credit Reporting Act restricts information sharing among affiliates for marketing purposes.
FinCEN issued rules under the BSA that apply to covered financial institutions, including The Bank of New York Mellon and BNY Mellon, N.A., setting forth five pillars of an effective AML program: development of internal policies, procedures and related controls; designation of a compliance officer; a thorough and ongoing training program; independent review for compliance; and customer due diligence (CDD). CDD requires a covered financial institution to implement and maintain risk-based procedures for conducting CDD that include the identification and verification of any beneficial owner(s) of each legal entity customer at the time a new account is opened.
The New York State Department of Financial Services (NYSDFS) issued regulations requiring regulated institutions, including The Bank of New York Mellon, to maintain a transaction monitoring program to monitor transactions for potential BSA and AML violations and suspicious activity reporting, and a watch list filtering program to interdict transactions prohibited by applicable sanctions programs.
BNY is registered as an FHC under the BHC Act. The company is subject to supervision by the Federal Reserve.
The Bank of New York Mellon, BNY’s largest banking subsidiary, is a New York state-chartered bank, and a member of the Federal Reserve System and is subject to regulation, supervision and examination by the Federal Reserve, the FDIC and the NYSDFS. BNY’s national bank subsidiaries, BNY Mellon, N.A. and The Bank of New York Mellon Trust Company, National Association, are chartered as national banking associations subject to primary regulation, supervision and examination by the OCC.
The company operates a number of broker-dealers that engage in securities underwriting and other broker-dealer activities in the U.S. These companies are SEC- registered broker-dealers and members of Financial Industry Regulatory Authority, Inc. (FINRA), a securities industry self-regulatory organization. BNY’s nonbank subsidiaries engaged in securities-related activities are regulated by supervisory agencies in the countries in which they conduct business, where required.
Certain of BNY’s public finance and advisory activities are regulated by the Municipal Securities Rulemaking Board and the relevant BNY affiliates have registered with the SEC, as required under the SEC’s Municipal Advisors Rule if they provide advice to municipal entities or certain other persons on the issuance of municipal securities, or about certain investment strategies or municipal derivatives.
Certain of BNY’s subsidiaries are registered with the CFTC as commodity pool operators, introducing brokers and/or commodity trading advisors, and as such, are subject to CFTC regulation. The Bank of New York Mellon is registered as a swap dealer (as defined in the Dodd-Frank Act) with the CFTC and is a member of the National Futures Association (NFA) in that same capacity. As a swap dealer, The Bank of New York Mellon is subject to regulation, supervision and examination by the CFTC and NFA.
Certain of the company’s subsidiaries are RIAs, and as such are supervised by the SEC. They are also subject to various U.S. federal and state laws and regulations and to the laws and regulations of any countries in which they conduct business. The company’s subsidiaries advise both RICs, including the BNY Mellon Family of Funds and BNY Mellon ETF Funds, and private investment companies which are not registered under the 1940 Act.
Certain of the company’s investment management, trust and custody operations provide services to employee benefit plans that are subject to the Employee Retirement Income Security Act of 1974, as amended (ERISA), administered by the U.S. Department of Labor. ERISA imposes certain statutory duties, liabilities, disclosure obligations and restrictions on fiduciaries, as applicable, related to the services being performed and fees being paid.
SEC Regulation Best Interest (Reg BI) requires a broker-dealer to act in the best interest of a retail customer when making a recommendation of any securities transaction or investment strategy to any such customer. The Form CRS Relationship Summary (Form CRS) requires RIAs and broker-dealers to provide retail investors with a brief summary about the nature of their relationship with their investment professional and supplements other more detailed disclosures.
The company maintains a presence in the U.K. through the London branch of The Bank of New York Mellon, The Bank of New York Mellon (International) Limited, a credit institution incorporated and authorized in the U.K., and a number of its investment firms. The company maintains a presence in the EU through the Frankfurt branch of The Bank of New York Mellon, BNY Mellon SA/NV, which is headquartered in Belgium and has a branch network in a number of other EU countries, and through certain of its investment firms.
BNY Mellon SA/NV is a public limited liability company incorporated under the laws of Belgium, holds a banking license issued by the National Bank of Belgium and is authorized to carry out all banking and savings activities as a credit institution. In Europe, branches of The Bank of New York Mellon are subject to regulation in the countries in which they are established, in addition to being subject to oversight by BNY’s U.S. regulators. The European Central Bank (the ECB) has responsibility for the direct supervision of significant banks and banking groups in the Euro area, including BNY Mellon SA/NV. The ECB’s supervision is carried out in conjunction with the relevant national prudential regulator (the National Bank of Belgium in BNY Mellon SA/NV’s case), as part of the Single Supervisory Mechanism. BNY Mellon SA/NV conducts its activities in Belgium as well as through its branch offices in Denmark, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Poland and Spain. In Europe, branches of The Bank of New York Mellon are subject to regulation in the countries in which they are established, in addition to being subject to oversight by BNY’s U.S. regulators.
Certain of the company’s financial services operations in the U.K. are subject to regulation and supervision by the FCA and the PRA. The PRA is responsible for the authorization and prudential regulation of firms that carry on PRA-regulated activities, including banks. PRA-authorized firms are also subject to regulation by the FCA for conduct purposes. In contrast, FCA-authorized firms (such as investment management firms) have the FCA as their sole regulator for both prudential and conduct purposes. As a result, FCA-authorized firms must comply with FCA prudential and conduct rules and the FCA’s Principles for Businesses, while dual-regulated firms must comply with the FCA conduct rules and FCA Principles, as well as the applicable PRA prudential rules and the PRA’s Principles for Businesses.
The PRA regulates The Bank of New York Mellon (International) Limited, the company’s U.K.-incorporated bank, as well as the London branch of The Bank of New York Mellon. Certain of BNY’s U.K.-incorporated subsidiaries are authorized to conduct investment business in the U.K. Their investment management advisory activities and their sale and marketing of retail investment products are regulated by the FCA. Certain U.K. investment funds, including investment funds of BNY, are registered with the FCA and are offered for sale to retail investors in the U.K.
BNY has several U.K.-domiciled investment firms that are subject to the U.K. Investment Firms Prudential Regime.
The company’s businesses servicing regulated funds in Europe and the company’s Investment Management businesses in Europe are also affected by the revised directive governing the Directive on Undertakings for Collective Investment in Transferable Securities
Strategy
The company’s strategy includes, but is not limited to, improving organic growth across the company’s businesses, delivering quality solutions and evolving the company’s operating model. Successful realization of the company’s strategy requires that the company provides expertise, insight and market-leading and technology-enabled products and services that drive economies of scale.
History
The Bank of New York Mellon Corporation, a Delaware corporation, was founded in 1784. The company was incorporated in 2007.
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