Galvin conducts inquiry into BNY Mellon technical glitch
Secretary of State William F. Galvin in conducting an inquiry into the technical glitch at Bank of New York Mellon Corp. that caused pricing problems in mutual funds and exchange-traded funds last month amid the market volatility.
Galvin, who oversees the Massachusetts Securities Division, said the state sent letters seeking information from New York-based BNY Mellon and to six of the largest mutual funds allegedly affected in the pricing glitch.
Galvin said the division is looking into how the technical issues may have affected individual investors.
“In the warp-speed of trading these days computer problems can happen,” Galvin said in a statement. “But the fallout that seems only to affect large financial institutions can hit the average investor looking at his and her retirement money.”
The initial round of inquiry letters went to Goldman Sachs & Co., Deutsche Bank, First Trust Advisors, Guggenheim Investments, Prudential Investments and Federated Investors.
BNY Mellon spokesmen were not immediately available for comment.
During the week of August 24, which started with a dramatic 1,000-point drop in the Dow Jones industrial average, BNY Mellon provided incorrect prices for both ETFs and mutual funds, the state said. Some prices deviated by more than 1 percent.
The software glitch allegedly affected at least 46 investment companies, hundreds of funds and billions of dollars in assets, Galvin said.