BNY Mellon caused a stir among big money managers when its' accounting software provided by SunGard crashed. This forced fund sponsors to manually sort pricing data as net asset values erred over 1%. This tech shortage is now raising questions on future liability for losses and false pricing, as banks continue to rely on external software.
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A new computer glitch rocking the mutual fund industry
The effects of the breakdown are threefold: It has made ETFs more costly to trade, hindered investors’ ability to trade accurately in and out of popular investment vehicles, and forced fund companies to scurry to price securities. The outage wasn’t related to the market turbulence Monday that included the largest-ever intraday point decline in the Dow Jones Industrial Average, the bank said. But it nonetheless has rattled fund companies.
