August 31, 2015 / 5:19 AM / in 2 years

BNY Mellon expects to fix pricing glitch before markets open

A woman walks past a logo at the office of the Bank of New York Mellon in Brussels, February 25, 2010.Sebastien Pirlet

(Reuters) - BNY Mellon Corp (BK.N) expects to fix the computer glitch that disrupted pricing of U.S. mutual funds and exchange-traded funds before markets open on Monday, its chief executive said.

The resolution of the issue, which affected the calculation of billions of dollars of assets last week, has taken far longer than expected, CEO Gerald Hassell said on a conference call, a transcript of which was made available to Reuters.

"We expect to complete Friday's NAVs for all but one of the affected fund clients by tomorrow morning ... Our goal is to provide fund clients with system-generated NAVs for Monday by tomorrow night," Hassell said on Sunday night.

The bank has completed calculating net asset values (NAVs) for all funds through last Thursday with the exception of those of one mutual fund client, Hassell said, without identifying the client.

An accounting system BNY Mellon relies on to calculate the prices of clients' mutual funds and ETFs broke down last weekend, disrupting pricing on nearly 5 percent of U.S. mutual funds and ETFs with about $404 billion in assets, according to data from Morningstar and Lipper.

Hassell said the bank still didn't know the root cause of the failure and would seek assistance from independent third-party to work on the issue.

Last Thursday, financial services software provider SunGard, which hosts an accounting platform that helps the world's largest custody bank calculate NAVs for its funds clients, apologized for the glitch that happened during a systems upgrade.

Reporting by Shivam Srivastava in Bengaluru; Editing by Gopakumar Warrier

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