Bank of New York Mellon Exits Derivatives As Margin Compression Pounds Industry

The Bank of New York Mellon Corporation (NYSE:BK) is closing the door on its foray into the highly competitive derivatives industry at a time of historic margin compression. Bank of New York Mellon shutting down derivatives business Kelly Bit from Bloomberg is reporting that Bank of New York Mellon, the world’s largest custody bank, is closing its derivatives sales and trading business. “BNY Mellon has decided to exit the derivatives sales and trading business that operates as part of the company’s Global Markets group,” spokesman Ron Sommer told Bloomberg. The move comes as activist investor Trian Fund Management pressured the…