AST ISSUE008 WEDNESDAY ASSETSERVICINGTIMES 02.03.2011 www.assetservicingtimes.com CONTENTS J.P. Morgan opens in Qatar J.P. Morgan has established a new office in Doha, Qatar, increasing the reach of its franchise in the Middle East. page2 BNY Mellon wins Mital mandate BNY Mellon Shareowner Services hasNorthern Trust to acquire Bank been appointed stock option plan admin- istrator for Mitel.Of Ireland Securities Services page3DUBLIN 25.02.2011 Citi wins in Jamaica Sagicor Life in Jamaica has awarded CitiNorthern Trust has reached an agreement to acquire “Ireland is one of the largest European domiciles for the mandate for global custody, hedgethe fund administration, investment operations out- cross-border fund administration,” said Northern Trust fund administration and risk reporting.sourcing and custody business of the Bank of Ireland chairman and chief executive officer Frederick H. Wad- page5Group, Bank of Ireland Securities Services (BOISS). dell. “We look forward to combining this business withNorthern Trust will pay up to €60 million (approxi- our existing activities in Ireland and continuing to providemately US$82 million) to acquire the business. the exceptional client service and solutions for which Regional focus The Nordic countries have emerged Northern Trust and Bank of Ireland Securities Services stronger and more transparent from the are both known.”The acquisition, which is subject to applicable regula- financial crisis. But competition for busi-tory approvals and other customary closing conditions, Bank of Ireland Securities Services is the largest Irish- ness is tough.is anticipated to close in the second quarter of 2011. owned asset administration provider and is based in Dublin. page6It is anticipated that on completion of the transaction, The business provides specialised, client-driven servicesNorthern Trust’s combined assets under custody and to a broad range of funds, including mutual money-mar- People movesadministration in Ireland will increase by approximately ket, multi-manager, exchange-traded funds, and property Find out the latest hires, and who is get-€70 billion (approximately US$96 billion). funds, serving both the on-shore and off-shore markets. ting promoted within the industry. readmore p2 page9 RBC Dexia enhances DBS mandate New guide to UCITS IV for management companies RBC Dexia Investor Services has extended its relationship with DBS Asset Asset servicing provider CACEIS has produced a new guide to UCITS IV for Management (DBSAM) to include the custody, fund administration, trans- fund managers. The publication, “Making the most of UCITS IV – A flexible fer agency, foreign exchange and cash management for the DBSAM RMB approach by management company profile”, sets out the business develop- Bond Fund, DBSAM China Wage Dynamic Fund and the DBSAM China Rail ment and restructuring opportunities for management companies under the Network Opportunities Fund. forthcoming UCITS IV regime as of 1 July 2011. readmore p2 readmore p2 Ten markets, ten cultures, one bank.
NewsInBriefJ.P. Morgan to service new solution to support the set up of an umbrella Financial Centre Regulatory Authority and was trust structure specific to that region.” recently authorised to undertake regulated activi-Africa fund ties in and from the Qatar Financial Centre, whichcontinued from p1 Deborah Ho, chief executive officer of DBSAM, will enable it to arrange credit facilities, deals in in- said: “DBSAM was born and bred in Asia, and is vestments and the provision of custody services,“This acquisition will enhance and expand firmly committed to both broadening and deep-Northern Trust’s Global Fund Service capabili- ening its roots here. In recent weeks, we have and to advise on deals in investments.ties, particularly in the key areas of fund admin- successfully launched specialist investmentistration and the support of ETFs,” said Steven funds to fulfil the investment needs of our high BNP Paribas appointed byFradkin, president of corporate and institutional net worth clients. We have also announced a ViewTradeservices at Northern Trust. “We look forward to strategic partnership with Nikko Asset Manage-working with our new clients and drawing upon ment, taking us farther down the path of being BNP Paribas Securities Services has been se-the intellectual capital and depth of leadership recognised as the leading independent Asian lected to provide global trade processing serv-talent that Bank of Ireland Securities Services asset management house. To these ends, we ices to ViewTrade Securities.will bring to our already successful operations have taken careful and deliberate steps over the BNP Paribas Securities Services will providein Ireland.” last year in preparing our platform for our next ViewTrade with correspondent clearing and stage of growth. It is therefore very important custody services through its US-registered bro-New guide to UCITS IV for that we have a trusted partner such as RBC ker dealer BNP Paribas Securities Corp. Dexia to support us as we grow.management companies In addition, ViewTrade will benefit from accesscontinued from p1 J.P Morgan opens in Qatar to BNP Paribas Securities Services’ clearingThe guide separates management companies and custody services network in more than 80according to their profile, from new UCITS mar- J.P. Morgan has established a new office in countries. This is a key strategic advantage con-ket entrants to experienced promoters. For each Doha, Qatar, further enhancing the reach and sidering ViewTrade’s growing client base in Eu-profile, the company’s experts analyse possible capabilities of its franchise in the Middle East. rope, the Middle East, Asia and South America.strategies for the management company relat- “After conducting a thorough evaluation of theing to opportunities created under UCITS IV, The office, which will be supported by J.P. Mor- gan’s industry and product teams worldwide, market for correspondent clearing and custo-establishing solutions to reach business objec- dy service providers, BNP Paribas Securitiestives. The guide also examines issues such as will provide local clients with on the ground presence and access to an array of J.P. Mor- Services emerged as the outstanding choicecross-border distribution, and restructuring of based on its superior service offering, exper-the organisational set-up and products. gan’s products and services, including invest- ment banking and treasury and securities serv- tise and overall ability to meet our needs,” saidWith long-held experience in the fund centres of ices products. James StClair, president and co-founder ofEurope and more recently in Asia, CACEIS has ViewTrade.developed a particular expertise in UCITS funds Heidi Miller, president of international at J.P. Morgan, said: “We are delighted to announce “We are enthusiastic about exploring the jointand cross-border distribution, assisting fund opportunities that the BNP Paribas relationshippromoters via a broad range of fund distribution the establishment of a new office in Doha. J.P. Morgan has ambitious international expansion presents to both our firm and to our global cli-support services. entele” added Robert Dombrowski, co-founder plans and being able to extend more productsThe “Making the most of UCITS IV – A flexible and services locally to clients in the Middle East of ViewTrade.approach by Management Company profile” is a top priority for our firm.”guide is available on www.caceis.com. Christina Feicht, BNP Paribas’ head of secu- The establishment of a branch marks a time of rities services North America added: “BNP great momentum for J.P. Morgan’s activities in Qa- Paribas is excited to have been appointed byRBC Dexia enhances DBS tar. The bank was recently involved in a number of ViewTrade to provide correspondent clearingmandate landmark transactions including the State of Qa- services in the United States. Clearing is onecontinued from p1 tar’s $7.0 billion triple tranche 144A/RegS bond of our flagship products and I am pleased that offering; Qatar Telecom’s $1.5 billion dual-tranche this is increasingly being recognised.”This mandate strengthens RBC Dexia’s position bond offering. J.P. Morgan also advised Qataras the provider of choice by early adopting Asian Real Estate Investment Company (Alaqaria) on FundSettle’s hedge fundfund managers like DBSAM looking to leverage its merger with Barwa Real Estate Company.the changing dynamics of the Renminbi (RMB) services used by Natixisand the China growth story. Karim Noujaim, senior country officer for J.P. Morgan in Qatar said: “J.P. Morgan has been Natixis (EuroTitres department) has become theDiana Senanayake, managing director of RBC fortunate to do business with Qatari clients for first client to use the new hedge fund services avail-Dexia Trust Services Singapore, commented: several years. We look forward to delivering the able on Euroclear Bank’s FundSettle platform.“DBSAM was looking for a nimble and trusted entire firm’s capabilities, including capital andpartner to service these funds and RBC Dexia innovative solutions to local clients in the years An extension of its established portfolio of servic-was able to quickly establish the support infra- to come.” es for investment funds, FundSettle now providesstructure needed to meet their timeframes. Hav- automated cross-border order routing, settle-ing strong relationships in the Cayman Islands The office, JPMorgan Chase Bank N.A. (Qatar Fi- ment, asset servicing and reconciliation servicesalso allowed us to offer DBSAM an end-to-end nancial Centre Branch), is regulated by the Qatar for approximately 300 fund administrators active 2
NewsInBrief ASTin hedge funds from all the major domiciles. Gard’s Valdi Market Access helps financial insti- tutions reduce infrastructure and support costsIvan Nicora, director and head of investment involved in connecting to electronic markets.fund product management at Euroclear, stated: SunGard’s long-standing relationship with SIX ASSETSERVICINGTIMES“FundSettle is filling a gap in the processing of Swiss Exchange, reinforced by our local pres-hedge fund transactions. Countless clients have ence in Zurich and Geneva, allows SunGard tobeen looking to transfer their entire fund port- deliver solutions that help provide greater sim-folio to a single provider that can automate the plicity and cost efficiency for investors and bro- Editor: Ben Wilkieprocessing and servicing of all their investment kers in the Swiss marketplace.” email@example.com transactions, including hedge funds. Tel: +44 (0)20 3006 2710“Operationally, hedge funds are very complex, BNY Mellon wins Mitelwhich deter most providers from taking on the mandate Marketing: Steven Laffertychallenge. Euroclear Bank is now able to sat- firstname.lastname@example.org market demand for a service provider that BNY Mellon Shareowner Services has been ap-offers a fully comprehensive service across all pointed stock option plan administrator for Mitel.fund classes.” Publisher: Justin Lawson email@example.comNorbert Cron, head of the EuroTitres department Based in Ottawa, Canada, Mitel appointed BNY Tel: +44 (0)20 8249 2615at Natixis, commented: “Finally, we can choose Mellon as transfer agent to support Mitel’s NAS- DAQ listing following an IPO last year. Fax: +44 (0)20 8711 5985a provider that serves all of our fund transactionprocessing needs. Having processed conven-tional investment fund transactions on Euroclear “This mandate adds an important new dimen- Published by Black Knight Media LtdBank’s FundSettle platform for years, we appre- sion to our valued relationship with Mitel,” said 16 Bromley Roadciate the added value that automation brings. By Elizabeth DaSilva, managing director and head Beckenhamtransferring our hedge fund processing require- of client relationship and product management Kentments to FundSettle, we will further improve our for BNY Mellon Shareowner Services. BR3 5JEback-office efficiency and reduce the operational “We welcome the opportunity to leverage our in- UKrisks associated with manual procedures.” tegrated services and thereby add value to our Company reg: 0719464The global hedge fund market is estimated to relationship by delivering a superior service ex-be worth USD 1.9 trillion (EUR 1.4 trillion), hav- perience to Mitel and its plan participants.” Copyright C 2011ing rebounded to pre-crisis levels following re- Black Knight Media Ltd.cent net inflows. However, the industry remains BNY Mellon appointed by All rights reserved.hampered by sub-optimal levels of processing To subscribe please visitautomation and market standardisation. Standard Life www.assetservicingtimes.comSunGard’s Valdi connects 20 BNY Mellon Asset Servicing has been appoint- ed to provide fund accounting, transfer agency,to SWX custody and corporate & domiciliary services toSunGard has added its 20th Valdi Market Ac- Standard Life Investments Global SICAV.cess customer to deliver software-as-a-service(SaaS)-based market connectivity to the SIX Domiciled in Luxembourg, the SICAV has as-Swiss Exchange (SWX). sets under management in excess of EUR8 billion across 20 sub-funds and is viewed bySunGard’s market connectivity services help ex- Standard Life Investments as its key vehicle forchange members and their direct market access achieving increased global distribution.(DMA) clients to trade on electronic markets fromany workstation or application. The SWX Valdi Mike Tumilty, director of operations at StandardMarket Access service gives access to both the Life Investments, said: “By the end of the selec-Standard Trading Interface (STI) and the Capac- tion process it became clear that BNY Mellonity Trading Interface (CTI) exchange platforms. had proven capability in securities servicing. I’m therefore pleased that we’ve appointed them toSunGard’s Valdi Market Access services help provide the necessary support to what is an areaexchange members outsource the activities of increasing strategic importance to Standardinvolved in procuring and managing the hard- Life Investments. We already work with BNYware, software and telecommunication links re- Mellon in key parts of our UK business and thisquired for market access. agreement will help cement the long-standingChris Landis, head of operations for SIX Swiss relationship between both our organisations.”Exchange, said, “SunGard has been workingwith SIX Swiss Exchange since 2004 to pro- Ross Whitehill, head of offshore at BNY Mellonvide market participants with managed market Asset Servicing, said: “Our flexibility and abilityaccess. Over these years, the collaboration be- to offer a robust set of solutions were central totween SIX Swiss Exchange and SunGard has Standard Life Investments’ decision to select usbeen very close and successful, benefitting our as their provider. Our introduction of share classmutual clients. Outsourcing market connectivity hedging for the SICAV and Global Distributioncan be a cost-effective and easy way for many Support capabilities to support SLI’s plannedfirms to access the exchange, so it can facilitate expansion in the Asia-Pacific region were keygrowth in the number of market participants.” elements of our proposition to Standard Life In- vestments. This appointment underlines our sta-Didier Bouillard, chief operating officer of Sun- tus within Luxembourg as the provider of choiceGard’s global trading business, said, “Sun- for investment managers looking for a scaleable 3
NewsInBriefand nimble partner who can help them executetheir growth strategy.”Singaporean funds availablefor settlement in ClearstreamClearstream has announced that Singaporean in-vestment funds are eligible for order routing, settle-ment and custody through its existing infrastructure.The Singaporean funds are made available onthe Clearstream order routing platform Ves-tima+ and its post-trade infrastructure for funds,the Central Facility for Funds, for settlement.Investment funds from other Asian jurisdictionswill follow after regulatory approval.Philippe Seyll, member of the Executive Boardof Clearstream and head of investment fundsservices, said: “We are happy to include thefirst Asian funds on our systems and to allowinternational investors easy access to these fi-nancial instruments. Through our order routingplatform Vestima+, we bring more than 82,000investment funds to investors around the globe.We observe a tremendous appetite by Asian in- BNP Paribas Securities Services’ efforts in im- meet these needs and believe this was a deter-vestors for investing into the funds that we hold plementing our listing. Their experienced team mining factor in winning the mandate.”on our platform.” had the technical expertise and global presence State Street and IFDSClearstream and the Deutsche Börse cash mar- required, for the successful completion of ourket Xetra recently launched the trading of mu- listing in Paris, Amsterdam - Aperam’s Euronext Appointed by PIMCOtual funds via stock exchange. The new service market of reference where our share is includedis especially interesting for investors in non-Eu- in the AEX index - and Luxembourg.” State Street and International Financial Dataropean timezones as stock exchange execution Services (IFDS) Canada have been appointedwill allow individual fund units to be priced and Pascal Pommier, head of corporate and issuers, by PIMCO to provide a range of investmentmonetised immediately and not, as currently the BNP Paribas Securities Services, added: “We services for PIMCO’s newly launched Canadiancase, the next business day once the net as- are delighted to have successfully completed retail funds.set value of a funds share has been calculated. this listing for ArcelorMittal with whom we haveOnce traded on stock exchange and pooled in a longstanding relationship. State Street will provide fund accounting, fundthe Clearstream systems, funds can also be re- administration, custody and trustee servicesused as collateral. and IFDS will provide transfer agency and unit- “Working on the spin-off has added a new di- holder recordkeeping services for the eight new mension to our relationship, and we hope thisBNP Paribas completes listing deal demonstrates our dedication towards sup- funds. Founded in 1971, PIMCO is a global investment solutions provider with more thanof Aperam porting our clients’ global expansion plans.” 1,300 dedicated professionals in 10 countries focused on managing risks and delivering re-BNP Paribas Securities Services has completedthe multi-market listing of Aperam, ArcelorMit- City Super picks J.P. Morgan turns to clients.tal’s recently spun-off stainless and specialty “Our retail funds leverage current institutionalsteels division. Australian fund City Super has awarded the mandates and provide Canadian investors with mandate for custody and administration serv- solutions that demonstrate PIMCO’s thought lead-The deal, which saw BNP Paribas Securities ices to its AUS1.5 billion corporate super fund ership,” said Stuart Graham, president, PIMCOServices act as technical adviser and agent for to J.P. Morgan. Canada. “After a competitive RFP process, wethe listing of Aperam’s shares on NYSE Euron- appointed State Street and IFDS based on theirext in Amsterdam and Paris and on the Luxem- The award follows the announcement that the ability to provide a specialised, technologically ad-bourg Stock Exchange, constitutes the bank’s fund will merge with the Local Government Su- vanced and efficient servicing solution that couldfirst listing in the Netherlands. per fund later this year, a fund that is already support this expansion of our business.”The development reaffirms BNP Paribas Securi- using J.P. Morgan. “We are pleased to be partnering with PIMCOties Services’ commitment to serving companies to launch its new funds and to help grow itsin the Dutch market, and its ability to undertake “We could show real world examples of our dis- business in Canada,” said Kevin Drynan, seniorcomplex, multi-country, multi-jurisdictional listings. cipline in this area. With industry consolidation vice president and managing director of State expected to continue, J.P. Morgan’s fund merg-The multi-market nature of the spin-off required Street’s investment servicing business in Can- er experience will continue to position us as aBNP Paribas Securities Services to work closely ada. “As the demand for asset servicing contin- leading service provider,” said Bryan Gray, headwith the three stock exchanges in the Nether- ues to grow, we remain focused on partnering of treasury and securities services sales and cli-lands, Luxembourg and France and their respec- with our clients as they expand in the region. ent management at the J.P. Morgan.tive Central Securities Depositaries (CSDs), as State Street is consistently chosen by clientswell as the Spanish Stock Exchange and CSD based on the strength of our technology and thewhere ArcelorMittal’s shares are listed. “Although custody and administration is increas- customisation that we offer.” ingly becoming a scale-driven business, clientsCommenting on the listing, Bernard Fontana, are continually seeking tailored solutions. As a “PIMCO’s Canadian retail business is anotherCEO of Aperam said: “We are delighted with provider, we are constantly looking for ways to key strategic business win for IFDS and we look 4
NewsInBriefforward to continuing our long-term partner-ship,” says Debralee Goldberg, president andCEO of IFDS (Canada) Ltd. “We are excited tobe deepening our relationship with PIMCO, aswe expand their business in Canada with ourmarket-leading services.”Citi wins in JamaicaSagicor Life in Jamaica has awarded Citi the man-date for global custody, hedge fund administrationand risk reporting.“Following a thorough review of service providers,we selected Citi because of its holistic view of ourbusiness,” said Rohan Miller, vice president, in-vestment manager, Sagicor Life Jamaica Limited.“Now, with Citi’s scalable solution and the portfolioof robust services it includes, we have the power-ful platform that will deliver the support we need tocontinue our global plans.”“This mandate from Sagicor Life Jamaica Limitedis further evidence that the marketplace is increas-ingly recognising the value of our hedge fund serv-ices platform,” said Neeraj Sahai, global head, se-curities and fund Services, Citi. “It is another primeexample that, at Citi, we can deliver both globalscale and leverage capabilities across the enter- transactions were processed, a 35 per cent in- agent and sub-accounting arenas provides themprise for the benefit of our clients.” crease over January 2010 (0.37 million). with a distinct competitive advantage. By ex- tending their relationship with BNY Mellon AssetClearstream figures rise Virtus picks BNY Mellon Servicing, Virtus can wholly focus on the contin- ued growth of their wide spectrum of offerings.”Clearstream has announced a rise in the assets Virtus Investment Partners has selected BNY Mellonunder custody and a big jump in securities lend- to provide mutual fund transfer agency services. Record year for Euroclearing services. BNY Mellon Asset Servicing will provide share- Euroclear clients deposited a record level of as- holder services, financial and regulatory report- sets for safekeeping and asset servicing withIn January 2011, the value of assets under cus- ing, and money market stress testing for the the Euroclear group national and internationaltody held on behalf of customers registered an Virtus Mutual Funds, which had $14.9 billion in central securities depositories (CSDs) in 2010.increase of eight per cent to €11.4 trillion (com- assets and 290,000 shareholder accounts as ofpared to €10.6 trillion in January 2010). Securi- December 31, 2010. At the end of 2010, the equivalent of EUR 21.9ties held under custody in Clearstream’s inter-national business experienced a rise of six per BNY Mellon Asset Servicing currently provides trillion of client assets were held by Euroclearcent from € 5.6 trillion in January 2010 to €6.0 fund accounting and administration, Blue Sky, entities, an increase of 10 per cent comparedtrillion in January 2011 while domestic German and custody services, as well as shareholder with the end of 2009. The value of securitiessecurities held under custody increased by nine services for closed-end funds, to Virtus Invest- transactions settled by Euroclear group CSDsper cent from €5 trillion in January 2010 to €5.4 ment Partners. rose to EUR 526 trillion, or 5 per cent, in 2010.trillion in January 2011. “We chose BNY Mellon Asset Servicing for trans- Tim Howell, chief executive officer of Euroclear SA/NV, said: “The most important contributionIn January 2011, 3.3 million international set- fer agency services due to their operational ef-tlement transactions were processed, a 21 per ficiencies and technology platform,” said W. made by Euroclear in 2010 was in sustaining operational stability and resilience for our cli-cent increase over January 2010 (2.8 million). Patrick Bradley, senior vice president, MutualOf all international transactions, 69 per cent Fund Administration at Virtus Investment Part- ents. As the global capital markets continued to be volatile, presenting challenges and opportu-were OTC transactions and 31 per cent were ners. “Through our existing relationship, the BNYregistered as stock exchange transactions. Mellon Asset Servicing staff have demonstrated nities for our clients, the growth we experienced responsiveness to our needs and the needs of in both the value of transactions processed and our fund shareholders. The cornerstone of our assets held in custody for clients during this dif-On the German domestic market, settlement business is an unwavering commitment to inves- ficult period reinforces Euroclear’s strengths.transactions reached 7.3 million, 23 per cent tor success, and we believe that BNY Mellon As- Our strong asset protection and risk manage-more than in January 2010 (5.9 million). Of these set Servicing can help us continue to make this a ment practices, and improvements to our assettransactions, 68 per cent were stock exchange reality for our mutual fund shareholders.” servicing and collateral management services,transactions and 32 per cent OTC transactions. have contributed to the solid - and by some “This mandate is indicative of our ability to deliver measures record - operational performance weFor Global Securities Financing (GSF) services, a comprehensive array of services that creates achieved in 2010.”the monthly average outstanding reached €550.7 great value for clients,” said Michael DeNofrio,billion. The combined services, which include tri- head of US investor services within BNY Mellon As trading volumes varied by country and assetparty repo, securities lending and collateral man- Asset Servicing’s Global Financial Institutions class in 2010, operating performance fluctuatedagement, collectively experienced a rise of 12 group. “Virtus has a clear understanding of the among the Euroclear entities, with some experi-per cent over January 2010 (€490.6 billion). evolving investor services environment and be- encing year-over-year gains in some measuresIn the Investment Funds services, 0.50 million lieves that our expertise within both the transfer while declining in others. 5
RegionalFocusNordicsThe financial crisis changed the Nordic region, making it an increasinglyattractive destination for international funds. But competition in the backoffice is fierce. BEN WILKIE REPORTSThe markets of Denmark, Sweden, Norway and “The introduction of CCP in 2009 was undoubt- clear’s multi currency platform that allows clientsFinland have long been identified collectively as edly the biggest event in the post trade market for to settle all trades - including settling cross-bor-a single destination but they do remain four com- the past five years,” says Ulf Noren, global head der transactions as if they are domestic trades,pletely separate markets. of sub custody at SEB. “This has completely re- and with reduced costs. There’s no set date for shaped the operative models and also the revenue the transfer, but it’s expected to take place someThere are similarities though. The financial crisis situation. Going from a situation where exchange time this year.increased the focus on transparency and risk trades where settling bilaterally in 1:1 relationshipmanagement within the market, and has led to the Nordic custodians are also having to deal with to a situation with netting has not made great won-introduction of a CCP and a single-platform CSD. the introduction of the Target 2 Securities regu- ders to sub-custodian’s gross revenues.These have increased liquidity and driven down lation, which aims to centralise the settlementcosts, but have had a knock-on effect on the custo- “[It] has made the market more attractive from a of euro denominated securities on a single Eu-dy business, where margins have been squeezed cross border cost perspective,” Noren continues. ropean platform by 2013. This could mean thatand value added services now the norm. “It might also have contributed to a safer and competition for custody business will move from more predictable market even if all current Euro- an inter-custodian battle to include CSDs as wellEMCF and Nasdaq OMX Nordic agreed to im- pean clearing models leaves a few things to be - again reducing margins.plement CCP clearing for cash equities in 2009. desired on that account. A related effect of CCPIn a statement EMCF said: “The introduction of is that banks have developed more sophisticateda CCP, in contrast to fragmented bilateral settle- and advanced risk management models, partly Similaritiesments, will benefit market participants by driving in response to the nature of a clearing environ- While it’s not uncommon for funds to think of theliquidity and lowering costs. Most European mar- ment but equally so in response to market su- Nordic region as one, there are significant dif-kets today are centrally cleared, and this move pervisory requirements and the same for their ferences in the markets. Of the four countries,ensures that the Nordics keep pace with inter- own management for counterparty risk control. A only three are part of the European Union, withnational standards. Most crucially in the current surprising effect of the CCP introduction (even if Norway having close links to the federation whileclimate, a CCP acting as counterparty to both the apples not necessarily are compared with apples remaining completely independent. And therebuyer and seller will significantly reduce counter- here)is the lowered settlement rates - an issue are four separate currencies, with only Finlandparty risk.” opting to become part of the eurozone. And al- that is addressed by an informal CSD/Bank con- though the EU is moving towards a more harmo- sultation process at this very moment.” nised regulatory structure, each country has its“The introduction of the CCP was driven by the own regime.crisis and competition from MFTs,” says Chris- The Nordic Central Securities Depositorytel Leonhard, head of customer services, group (NCSD) was acquired by Euroclear from the “International asset managers do consider thetrading and investment support at Danske Bank. previous main shareholders, Nordea, SEB, Nordics to be one region, at least initially,” says“There had been talk about implementing it for at Svenska Handelsbanken and Swedbank. The Leonhard. “But when they go into more detail,least 10 years but in 2008/9 we drove forward to purchase also included the Finnish and Swedish they realise it’s four very different markets. Theybe able to implement it in three markets by Octo- CSDs, which meant that transaction processing do expect you as a back office provider to be ableber 2009, with Norway following in July 2010.” activities for the region will transferred to Euro- to cover all four countries. 6
RegionalFocus“Most asset managers have Nordic shares intheir portfolios. It’s not a large market, but you The future Northern Trust enhancecan diversify, and the economics in each of thefour markets are very different, which means you While custodians in the region continue to remain positive about the coming years, especially with Nordic offeringcan spread the risk.” increased inflows from both domestic and inter- national asset managers, issues do remain. Cus- Northern Trust has received approval from the Finansinspektionen (the Swedish Fi-The players tody fee margins will continue to be squeezed, potentially leading to mergers or acquisitions nancial Supervisory Authority) and the UK within the smaller providers, while the increasing Financial Services Authority to offer assetIt’s a competitive market. Northern Trust is mak- regulation will place a further burden on banks. management products and services to in-ing significant inroads, while other multination- vestors across the Nordic region, directlyals also have a presence. Domestically, Danske from its Stockholm office. “I think that 2011 & 2012 will continue to be finan-Bank, Handelsbanken, Nordea and SEB all have cially challenging and that whatever is happeninga significant regional footprint, while DnB is a ma- “In order to best serve our clients’ needs, we thereafter very much will be dependent of how thejor player in Norway. have to support them in their home market,” regulatory scene plays out,” says Noren. “On a positive note, I think that a few banks (in which said John Krieg, managing director of NTGI“Margins have been cut so tight that it’s almost not league SEB intends to stay) will benefit from po- in Europe, Middle East and Africa. “North-worth our while offering custody services in the re- sitional changes primarily driven by T2S (whether ern Trust has a long heritage of working withgion,” says one manager at a regional provider. “If or not T2S happens according to plan). This will in- some of the most sophisticated institutionalour clients only took our custody service, we would evitably lead to further consolidation and pair that funds and investment managers in the Nor-end up making a loss. So it’s the value added serv- with infrastructural changes, you will see a future dics, such as AP7 for example. This localices that are more important to us as well as the re- where every card must be played carefully.” expertise will support us as we bring ourlationships we are building with our clients that offer market-leading global investment manage-spread into other areas of our business.” ment products and services to the region Whether the Nordic region will continue to be and expand NTGI’s footprint.”Corporate actions, proxy voting and tax recla- considered a market in its own right is up for de-mation have become key components of any bate, says Leonhard. “In the future, I don’t thinkservice offering. “The demand is from the under- the Nordic market will be seen so much as alying clients who want to use and exercise their region, it will simply be seen as part of the Eu- Next issue:rights and optimise their revenues - hence the ropean market,” she explains. “The harmonisa-increased need for voting and tax reclaim serv- tion with regulations will increase the likelihood European market profileices,” explains Leonhard. of that.” AST PERFECT FIT If clothes are to t really, really well they need to be tailor-made. The same is true for Securities and Fund Administration Services. Our innovative services help you to maximize ef ciency. Tomas Lundmark, Head of Sales firstname.lastname@example.org Neal Meacham, Head of Client Management email@example.com Swedbank Securities Services 7
PeopleMovesIndustry AppointmentsThe International Capital Market Association “In Atul, we have a very strong business leader Axe joins from Barclays Capital where he was(ICMA), which represents capital market par- with outstanding credentials whose experience, most recently global head of operations and COOticipants globally, has announced that Yury dedication and focus on execution in managing EMEA. He will replace Roger Liddell, who hasDubin, director of custody of Sberbank will successful teams, and strategic growth initia- been chief executive since July 2006 and whochair the ICMA Committee for Russia and the tives make him uniquely qualified for the job.” announced his intention to retire in July 2010.CIS. ICMA has also appointed high-level rep-resentatives from ICMA’s member banks in Bravura Solutions has expanded its global Commenting on the appointment Jacques Ai-the region as members of the new Committee. wealth management team with the appointment grain, chairman, LCH.Clearnet said: “Ian has of Steve Bingle as sales executive for Asia. experience of building successful businessesHans-Joerg Rudloff, ICMA’s chairman, said: around the world. This, combined with his“We are delighted that Mr Dubin has accepted Bingle has more than 30 years of indus- extensive financial expertise, makes him wellthe role of chairman of the Russian regional try experience throughout Asia Pacific placed to lead LCH.Clearnet at this exciting andcommittee to spearhead mutual efforts in the as a partner level consultant and front- challenging time. As the market leader in OTCexchange of information and expertise between line banker. In his new role, Steve will be clearing and with expertise in a broader rangeinternational financial markets and those of Rus- based in Hong Kong and will be responsible of assets than any other clearing house global-sia and the CIS. He and the newly appointed for driving new business throughout Asia. ly, LCH.Clearnet is well placed to benefit fromcommittee members will be building on ICMA’s the worldwide drive to reduce systemic risk.”lengthy and productive involvement in the Rus- Simon Woodfull, group chief executive officer ofsian market, through its cooperation with the Na- Bravura said: “We are delighted to welcome Ste- Aigrain continued: “Roger has successfullytional Securities Market Association (NSMA).” ve to Bravura. He has a very strong track record of steered the company through a period of unprec- forging enduring client relationships with many of edented turmoil in the financial markets and builtDubin said: “I look forward to advancing the region’s leading global and regional financial the foundations for future growth. I would like tothe prospects of Moscow as a global finan- services organisations, bringing real value to his thank him for his years of excellent leadership.”cial centre, through alignment with such an clients and leading significant business growth.internationally recognised organisation as Axe said: “I’m delighted to be joining LCH.ICMA with its extensive expertise gained in “Steve’s skills and hands-on experience will help Clearnet; never has the importance of clear-cross-border market operations and mar- us to engage with existing and prospective clients ing been so evident, nor the opportunitiesket practice over more than 40 years”. to help them implement the very latest in wealth so great. LCH.Clearnet is at the forefront of management technology. We are confident that its industry and plays a vital role in reduc-Citi’s Securities and Fund Services, part of the he will be a valuable addition to our company.” ing risk across financial markets globally.”Global Transaction Services division, has ap-pointed Atul Dubey as chief operating officer. Before joining Bravura, Bingle was vice presi- Axe has 17 years of broad experience in the dent of ValidSoft (Financial Services Fraud financial sector. He joined Barclays Capital inDubey takes the role after serving as COO of Software) in Hong Kong, where he was respon- 2002 from Booz Allen Hamilton, where he wasthe Investor Services business within Securi- sible for customer acquisition as well as prod- a principal in the financial services practice, ad-ties and Fund Services. In this new role, he will uct and market strategy. His work has been vising leading financial institutions on strategicalso oversee the Electronic Markets business. recognised internationally, winning the Wharton issues. At Barclays Capital he was responsible Business Transformation Award and the Insti- for a number of key initiatives, including the for-Dubey joined Citi in 2005, running the strat- tute of Financial Services Innovation Award. mation of Barclays Wealth, the development ofegy unit for the Institutional Clients Group, ABSA Capital into South Africa’s leading invest-and prior to that he spent 10 years at Booz, “I’m very pleased to join Bravura and I’m look- ment bank, the integration of Lehman BrothersAllen & Hamilton, providing strategic advice ing forward to developing the significant oppor- and the divesture of BGI. He was also globalto leading global financial institutions in the tunities that exist within the Asian market,” said head of equity finance and was appointed COOwholesale banking, capital markets and se- Bingle. “I believe that with Bravura’s next gen- EMEA Barclays Capital in 2009 and head ofcurities processing space. He holds a BS in eration products, particularly the new compre- operations in 2010.Mechanical Engineering from the University of hensive wealth management solution Sonata,Bombay and an MBA from Carnegie Mellon. we have an extremely compelling and market Axe is expected to commence his duties in leading proposition to offer clients in the region.” early April.“We are pleased to be promoting a highly-experienced industry manager to provide LCH.Clearnet Group has appointed Ian Axemanagement oversight of the continuing op- as chief executive of both LCH.Clearnet Group Send all people moves toerations of this business,” said Neeraj Sahai, Limited (the group holding company) and LCH. firstname.lastname@example.org head, securities and fund services, Citi. Clearnet Limited (the UK based subsidiary). SLT Covering all areas of securities SECURITIESLENDINGTIMES ﬁnance Don’t miss out. WWW.SECURITIESLENDINGTIMES.COM Subscribe now - click here 9