BNY Mellon has formed a new company BNY Mellon Clearing to clear futures and derivatives trades on behalf of institutional clients. The new firm is to meet the growing needs of clients who trade derivatives and seek a global clearing partner with operational, financial and risk management expertise.

The BNY Mellon Clearing, a US registered futures commission merchant and a member of the National Futures Association, plans to become a clearing member on major exchanges and central clearinghouses on a global basis to support the trading activities of its clients.

Sanjay Kannambadi will serve as CEO of BNY Mellon Clearing, reporting to Art Certosimo, senior executive vice president and CEO of alternative and broker-dealer services at BNY Mellon.

Earlier, Mr Kannambadi was the head of BNY Mellon’s office of innovation, where he led a team responsible for the development and commercialization of new products and services across the company’s businesses.

Gerald Hassell, president of BNY Mellon, said: “BNY Mellon Clearing represents a logical extension of our business model as the leading securities servicing provider in the world.”

Mr Kannambadi said: “BNY Mellon Clearing will provide clients with our extensive operations, technology, risk, finance and compliance capabilities, along with access to exchanges and clearinghouses around the world. The company’s formation is designed to anticipate the rapid changes occurring in the clearing and settlement process for derivatives and the need for institutional investors to have a capable, stable partner as the market grows and evolves.”