BNY MELLON TAKES STAKE IN NASDAQ’S IDCG CLEARING SUBSIDIARY

Posted June 30, 2009

NEW YORK -- The Bank of New York Mellon (NYSE: BK) has made a strategic minority investment of an undisclosed amount in International Derivatives Clearing Group (IDCG), a subsidiary of Nasdaq OMX. IDCG is a designated clearing organization for clearing and settling interest-rate swap contracts and other fixed-income derivatives contracts.

IDCG will use BNY Mellon securities servicing products, including margin and collateral management. This will provide clients of both firms with immediate solutions that meet their end-to-end OTC derivatives clearing and processing needs, which are critical to addressing current regulatory and infrastructure challenges.

“Nasdaq OMX is pleased to have partnered with a global institution such as The Bank of New York Mellon that shares our vision to provide efficient derivatives clearing using a central counterparty system, one that reduces credit risk in the large, OTC interest-rate-swap market,” says Robert Greifeld, Chief Executive Officer, Nasdaq OMX. “The timing of this strategic investment reinforces the strength of our clearinghouse model. It also lends support to President Obama’s proposed reforms of the OTC derivatives market.”

As part of the investment, Art Certosimo, Senior Executive Vice President and CEO of Broker-Dealer Services and Alternative Investment Services for BNY Mellon, will join the board of IDCG.

“This strategic partnership with Nasdaq OMX provides our buy-side and sell-side clients with a flexible platform that meets their derivatives trading, clearing and servicing needs,” says Gerald Hassell, President of BNY Mellon. “We will continue to support the development of market infrastructure that enhances the transparency and stability of the global financial markets by addressing counterparty and systemic risk concerns.”