BNY Mellon ‘back to normal’ today after SunGard system outage
BNY Mellon expects to have its SunGard InvestOne system back to normal today following testing over the weekend and the US Labor Day holiday and have caught up on the generation of net asset values for clients.
The bank’s US implementation of InvestOne was corrupted during an operating system change on 22 August by SunGard. SunGard’s back-up was also corrupted, preventing failover and extending the recovery time. Officials said that they had not identified the root cause, but will be “conducting a thorough analysis including engaging a separate, independent third party to assist us”.
By the end of the weekend, the bank said it had caught up with producing system-generated net asset values for all mutual funds and ETFs for Monday, 31 August and for exchange-traded funds up to the previous Friday.
“Assuming we meet this schedule, we should be able to have system-generated NAVs for Monday by either Monday night or very early Tuesday morning. We would then be caught up and processing system-generated NAVs on a daily basis going forward,” said a notice on the bank’s website.
While the InvestOne system was down the bank added “significant resources to our fund accounting teams in order to produce NAVs under the alternative methods as directed or chosen by our clients”.
As it result it says “we believe we enabled all funds to be in a position to trade on a daily basis, so we know of no broad based or significant impact on the ability of our clients’ funds to trade”.
The bank says that it doesn’t expect the problem to recur. “We believe the new instance of InvestOne is reliable and sustainable. The new system has now run for two days,” said Suresh Kumar, chief information officer, in a conference call. “We believe the new instance of InvestOne is reliable and sustainable. The new system has now run for two days. We also have a new disaster recovery system and it is receiving updates real-time. We are establishing a third instance and we are backing up the data, so we believe we have a reliable backup in place. . We also have a new disaster recovery system and it is receiving updates in real-time. We are establishing a third instance and we are backing up the data, so we believe we have a reliable backup in place. Working with SunGard, we have also co-located SunGard’s engineers, BNY Mellon’s senior technology leadership, and top engineers from IBM, Oracle, and Cisco and we have continuous monitoring and oversight, it said.
