FYI: Bank of New York Mellon Corp. BK +0.21% lost VanEck Associates as a client of its servicing business for exchange-traded funds to rival State Street Corp. STT +1.03% , people familiar with the matter said.
VanEck is consolidating its custody work, the people said. Based in New York, the firm manages more than $49 billion in assets. It isn’t known how much of that total will shift to State Street, which already serves as a custodian to some VanEck funds.
The loss puts a dent in BNY Mellon’s push to become a bigger player in the market for servicing ETFs.
The rise of ETFs has transformed large parts of Wall Street. These products trade on exchanges like stocks but are cheaper, more transparent and often more tax-advantageous than mutual funds. There are now more than 2,200 ETFs listed in the U.S., and ETF trading now accounts for roughly 20% of the daily volume in U.S. stock markets each day, according to Nasdaq.
Regards,
Ted
https://www.wsj.com/articles/bank-of-new-york-mellon-loses-key-etf-customer-to-state-street-11566471720
