California-based capital markets platform FinancialOxygen has launched a new Web-based service enabling independent financial institutions to offer their commercial clients a wide range of mutual funds on a private-label basis.
The programme will allow independent financial institutions to onsell mutual funds from Federated Investors, JPMorgan Chase and Nations Funds from Bank of America, via the BankOxygen trading hub. The company intends to offer additional fund families in the future.
BankOxygen participants can also purchase mutual funds directly from all three providers to aid daily cash management and balance sheet activities. Since the programme was started in October, independent financial institutions have executed $1 billion in mutual fund transactions.
Robert Oxenburgh, CEO of FinancialOxygen, comments: "Providing access to mutual funds on a wholesale basis gives independent financial institutions another attractive investment alternative, particularly given the falling rate on Fed funds."
The trading hub offers Fed funds, repos, money market securities and loans. It currently transacts more than $3 billion a day.