NEW YORK, June 30 (Reuters) – Bank of New York Mellon Corp (BK.N) has made a minority equity investment in a Nasdaq OMX Group Inc (NDAQ.O) unit that clears and settles interest rate swaps and other fixed-income derivatives contracts.
Terms were not disclosed. Nasdaq said the clearing unit, International Derivatives Clearing Group, will use Bank of New York Mellon’s securities servicing products, including margin and collateral management.
The companies said the partnership provides Bank of New York Mellon clients with a platform to handle derivatives trading, clearing and servicing, and lends support to U.S. President Barack Obama’s proposed reforms to the over-the-counter derivatives market.
In connection with the investment, Art Certosimo, chief executive of broker-dealer services and alternative investment services for the bank, will join the derivatives unit’s board.
Bank of New York Mellon earlier this month repaid the $3 billion of taxpayer money it took from the Troubled Asset Relief Program.
The bank would like to expand globally, and the repayment may make it easier to make acquisitions and investments. (Reporting by Jonathan Stempel, editing by Maureen Bavdek)