October 2009

Volume 6 No. 43
GBP 25 - UK, ROW
USD 45 - America
EUR 35 - EMEA
www.ISJ.tv

Custody - Latin America

Regulation - Poland
Analyse This - Sub-Custody, China
THE GLOBAL SECURITIES SERVICES INDUSTRY MAGAZINE

Got the message?

Competition to SWIFT is hotting up

Credit Rating Agencies: Reform

Executive Profile: Fidelity ActionsXchange
Panel: Risk Management Today

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Front Cover Section ISJ43.indd 2 09/10/2009 09:27

 ISJ Investor Services Journal Heads up

P.08 Executive Profile P.19 Analyse This: China P.20 German Custody P.22 Panel Debate

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

P.04 News

Editor’s letter
interviews with top delegates. however, still pending in the
On the up The mood at the event was credit rating sector. After a
altogether buoyant, with so significant degree of flak from
Major changes continue many firms in both banking the media and the market
to impact the international and technology eager to build during the financial crisis, this
financial system, and very their contact lists and explore ubiquitous investor service
much for the better. After the the opportunities that Asia is will look to begin a clean slate
Features editor: blood transfusion that central increasingly presenting. from 2010. Some of the rating
Ben Roberts banks had been providing their
ben.roberts@2i.tv This issue of ISJ, the agencies seem to have pre-
countries through quantitative penultimate for 2009, is also empted some of the regulatory
senior correspondent: easing – treasury bonds for cash looking to embrace change, crackdown with structural
Craig McGlashan
craig.mcglashan@2i.tv – market liquidity and capital growth and new options in changes to avoid the accusation
is growing. The global stock investor services. Over the last of ‘business as usual’.
Reporter:
Kimberley Ferguson
markets continue an overall rise, few weeks, Craig McGlashan Risk management - as ISJ
kimberley.ferguson@2i.tv and despite concerns that this is has kept his ear to the ground readers will know - is a subject
a shallow indicator for economic regarding the future of to which we keep returning. This
Contributing editor:
anthony harrington resurgence, institutions seem messaging services. SWIFT, still issue we quiz a panel of experts
to be able now to look and plan the dominant player, may face in different areas of the financial
account manager:
Cicely lewis that little bit further ahead. increasingly strong opposition industry who nevertheless gave
cicely.lewis@2i.tv This point is partly testified in the field of investor us fascinating insight. n
by the amount of requests Risky
for business? communication. Ben Roberts
senior account manager:
Patricia De la Grange proposals that have appeared Poland seems to be heading
trish.delagrange@2i.tv over the last month or so, with towards a bigger, Securities lending program parameter adjustments
Business development manager: custodians polishing theirInterestingly, for respondents
brighter future
that did make as Program parameter adjustments: The inherent flexibility in many securities
James olweny service pitch in the face ofparameter changes,the SOURCE: RBC Dexia Investor Services
james.olweny@2i.tv
markets ‘come
including those that
suspended participation, they tended to make
lending programs is intended to be used to
the advantage of beneficial owners. And while
institutional investors seeking a back’
multiple changes – ones after putting
that reflected their
STATS-SNAP: The
securities lending is generally a conservative
web producer: new home for their assets. SGSS
focus
in place a number of
on managing risk. graph illustrates
product from a risk perspective, there are real
Peter ainsworth the risks
fivewhich
main must be understood and closely
peter.ainsworth@2i.tv
in particular has enjoyedThe anmost common adjustment
legislative was in changes.
relation managed. These risks, and their mitigants,
astonishing run, and its reported Latin cited
to borrowing counterparties, America,
by 38% of too, changes being
should form an integral part of a beneficial
operations manager: seven mandate wins in Italy this
those that made program changes, followed by made to securities
owner’s securities lending policies and
nicolette whittaker continues
adjustments to the type to see
of collateral accepted. procedures and be actively monitored.
year seems to have fully paid lending programs.
nicolette.whittaker@2i.tv astonishing
Considering the exceptional market turmoilgrowth
off its outlay for Unicredit’s
that ensued following the collapse of Lehman Lenders are
Brothers, this was anin its fund sectors
Managing director:
securities services business three
entirely rational reaction.
predominantly
Type of collateral accepted

Cash vs non cash collateral

Borrowing counterparties

Jon hewson – pension, insurance

Cash reinvest paramteres

jon.hewson@2i.tv years ago. making changes,

and mutual alike –
Margin requiremetns

rather than
The Sibos conference last presenting numerous
Chairman: stopping the
Mark latham month was another fruitful trip opportunities
mark.latham@2i.tv programs,
for companies and journalists for international according to a
2i uK 16-17 Little Portland Street, alike, and ISJ.tv is proud to custodians. survey.
London W1W 8BP, UK present a number of video Changes are,
T: +44 (0) 20 7299 7700
F: +44 (0) 20 7636 6044

2i usa 410 Park Avenue, 15th Floor Securities lending survey results | Latest mandates
RBC Dexia Investor Services 6

New York, NY 10022

T: +1 212 231 8421 F: +1 212 231 8121
Month Winner Client Location Assignment Mandate size
© 2009 2i Media
All rights reserved. No part of this September RBC Dexia Manulife Singapore Singapore Fund Valuations SGD1.5 billion
publication may ..................................................................................................................................................................................
be reproduced, in
whole or in part, September CIBC Mellon Marrett Asset Mgmt. Toronto Custody n/a
without prior writ-
ten permission from September SGSS ST Microelectronics Netherlands Global Custody EUR1 billion
the publishers.
Issn 1744-151X. September SGSS Vallourec France Global Custody EUR120m

1-13 ISJ43.indd 1 19/10/2009 10:51

 Contents ISJ Investor Services Journal
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Contents Letters
regulatory bodies. Unfortunately,
Dear ISJ a move to rationalise SEPA and
competition and innovation in EBICS to seems to be a long way
In this issue off.
the messaging market.
Most of the taxpayer SEPA is not just about the
support of firms returning to Eurozone, it affects businesses
Regulation
COVER STORY ‘business as usual’ remains in globally that deal in this currency
COVER STORY
12 Poland - Legislation place, which includes liability zone.
- Poland has Westernised its guarantees, access to central The implementation cycle
regulatory framework for short bank facilities, money market perceived by the regulators,
selling. mutual fund backstops, etc. so primarily the ECB, was that
that the playing field remains the banks would communicate
highly subsidised and distorted. detailed SEPA process changes
14 Credit ratings The real question is how things to their customer base –
- Reform will go once these supports are particularly the corporates – but
Ben Roberts rounds up the stripped-away and how the it has been no surprise that the
changes in the credit rating taxpayers will be compensated banks have not exactly rushed
sector and the growing use of the for shouldering these massive to do so.
CDS market as an indicator of a guarantees. There was no other organised
firm’s financial health. In many countries they are form of communication out to
very angry, and have good the commercial economies of
Custody
reasons to be, especially when Europe, so it is probably true to
Got the message? financial firms return to say that for a long time many
Technology, page 10 16 Latin America - Market “business as usual” and the next corporations believed that SEPA
growth Anthony Harrington big crisis may be only a few years was another ‘banking thing’ that
finds that regulatory changes and did not affect them, and perhaps
down the road. The reputation
booming markets are creating
People of the industry is at an all-time a good number of commercial
many opportunities for custody
low, for good reasons. organisations still believe this!
02 Letters business.
There is a short-term risk for
Professor Ingo Walter, commercial consumers who
04 News The last month of updates 19 ECB is lending help - SimCorp StrategyLab n persist in trading through the
in custody, clearing, securities Securities lending The older, very-costly-to-maintain
lending, legal, regulation, prume ECB paper is a vital reminder of payments instruments.
brokerage and technology. the benefits of securities lending. In particular, cash
Dear ISJ transactions and cheque
transactions are already being
06 News analysis - Custody Analyse This - China penalised in many countries,
concern of EU rule draft Guest comment about the growth
SEPA was originally and will be hit very hard in the
Plus, reader reaction to the Sibos of sub-custody in the world’s
devised by regulators, near future – only partly to cover
conference. most populous country. primarily for the benefit of the bank processing costs – the
financial services consumers in greater objective will be to price
People
22 Meeting client needs in the Eurozone. However, banks them out of the market and kill
08 Meeting the challenges Germany - Depot banks have had to bear the burden of them off.
the associated implementation The costs of SEPA
- Executive Profile The choice between a bundled
Laura Pollard and Deborah and tailoredcustody service is costs, actually incurring implementation have yet to be
Culhane of Fidelity a vital decision for instituional transaction business losses in covered. Possibilities include new
ActionsXchange chat to Craig so doing. Therefore, it is no big tariffs, affecting both private and
investors.
McGlashan. surprise that they postpone commercial consumers, for both
investment of resources on national and international credit
Technology 24 ISJ Panel - Risk associated initiatives for as long transfers and direct debits.
management Three as they can – with much of the
10 Got the message? - The well-placed sages answer ISJ’s market becoming compliant Richard Spong, Financial
SWIFT alternatives - questions. only shortly before the phase Services Industry Marketing
Craig McGlashan investigates the end-dates, mandated by Manager, Sterling Commerce,
legislation. EMEA n
25 Directory of services The countries already bound
The company listing.
to EBICS are resisting the SEPA
to renew your subscription priority for the moment, as To express your views, write to
please telephone: they have existing compliance ben.roberts@2i.tv or write a blog at
MEMBER - periodical +44 (0)20 7299 7700 www.ISJ.tv
publishers association or visit... WWW.ISJ.tv
commitments to their national

2 Me

1-13 ISJ43.indd 2 19/10/2009 10:51

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0857_Adv 2i Media.indd 1 05-08-2009 16:06:17
 Letters
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
News
Custody
RBC Dexia Investor Services
is to provide custody and
settlement for Unione di Banche
Italiane scpa’s (UBI Banca)
international securities activities.
The agreement is part of a deal
confirmed last week in which
the Italian firm is to transfer its
depositary bank business to the
custodian.  officer in addition to an anti-
Northern Trust opened a branch
office in Stockholm, Sweden,
enabling an extension of its
offering to Nordic clients.
Madeleine Senior was appointed
as managing director, and will
oversee all of the US bank’s
activities across Norway, Finland,
Sweden and Denmark. Mireille
Andersson was appointed head of
sales for the Nordic region.
CDG Capital, a subsidiary of
the Group Caisse de Dépot et de
Gestion, selected BNP Paribas
Securities Services for global
custody of its non-Moroccan
assets linked to the recent
legislation permitting the
expatriation of investments
outside Morocco.
Fund Administration
EDHEC-Risk and CACEIS created
a new research chair on ‘Risk and
Regulation in the European Fund
Management Industry’, through
which EDHEC researchers will
develop solutions to the major
risks currently faced by the asset
management industry in Europe.
The chair will be headed up by
Noël Amenc, director of EDHEC-
Risk.
Citi Global Transaction Services
has signed a new five-year
agreement with Standard Life
Investments, which will see the
bank provide fund administration
and securities services to the
asset manager.
Société Générale Securities
Services (SGSS) won five new
mandates to provide depositary,
fund administration and global
custody services and an additional
new mandate for the asset
servicing valuation of complex
1-13 ISJ43.indd 4
products. The new clients include
EDF, Blackfin and Vallourec in
France, ST Microelectronics in
the Netherlands, Peregrine
Derivatives (PTY) in South Africa,
and Aktia Bank in Finland. It
also revealed it has won seven
mandates in Italy this year.
Legal
Cayman-domiciled investment
funds must appoint a compliance
money laundering officer,
according to changes in the
guidance notes by the sector’s
watchdog. In the wake of greater
push towards transparency of
the fund listed in tax havens and
accountancy super scandals,
the Cayman Island Monetary
Authority (CIMA)’s Guidance
Notes on the Prevention and
Detection of Money Laundering
and Terrorist Financing has sought
to represent the two roles at
management level.
Clearing
Singapore Exchange Limited
has appointed Fortis Bank Global
Clearing N.V. as a Clearing Member
for its securities market, and
as both a Clearing and Trading
Member for its derivatives market.
The National Depositary Centre
(NDC) and SWIFT signed an
agreement allowing NDC’s
counterparties to access SWIFT
and securities settlement
infrastructure through a new
channel based on Alliance Lite
internet technologies.
Netherlands-based European
Multilateral Clearing Facility
(EMCF) is providing central
counterparty clearinghouse
services for QUOTE MTF, the newly-
launched multilateral trading
facility (MTF). QUOTE MTF – which
offers a “no-frills” approach to
trading - began operating on
4th September and every trade
executed on the Hungary-based
exchange will be handled by EMCF.
Transaction banking has remained
one of the central pillars for
balance sheet growth throughout
the economic downturn, and
still accounts for up to 20% of
revenue, according to the World
Payment Report 2009. Though
some institutions’ payment
operations – often termed
Global Transaction Services
(GTS) – took hits to performance
amid difficult markets this year,
banks have profited from the
relative steadiness of the income
compared with their investment
arms.
Securities Lending
Securities lending participants
are holding firm or adjusting
their risk parameters rather than
suspending their programmes,
according to the latest
survey of beneficial owners
and market intermediaries.
Despite purported large-scale
programme suspensions amid
market volatility, only 17% of
86 respondents to the survey by
RBC Dexia stopped lending. The
majority, 60%, made no changes
to their programmes.
The US Securities and
Exchange Commission (SEC)
held a roundtable discussion
on securities lending and short
selling last month that featured
a range of panellists from various
interested parties.
Technology
In ISJ’s Data Services Market
Guide earlier this year, the
article ‘The pendulum swing of
innovation’ was written by Stuart
Grant of Sybase, rather than
Stuart Calder of Linedata Services,
as wrongly stated in the guide. ISJ
is happy to clarify the point.
The National Depository Centre
and the Professional Registration
Centre CJSC have adopted a new
electronic data interchange (EDI)
system for their information
interactions. The NDC and the
Registrar, trialled the product and
decided that the use of an EDI
allowed accelerated operations,
reduced the risks of error and
fraud, increased operational
efficiency and enhanced
confidentiality in the course of
information exchange.
IT infrastructure provider Options
IT bought the hosted collocation
business of BNP Paribas’ prime
ISJ Investor Services Journal
brokerage division.
Omgeo, the post-trade
automation specialists, hired
three new associates for its
collateral management product
Omgeo ProtoColl.
peterevans, the technology
provider, launched a new product
for managing and calculating
daily margins. xanite Margin
Engine (xanite ME) aims to
provide greater transparency for
the trading risk profile of non-
clearing members and reduced
margin risk exposure.
Regulation
Switzerland has begun conforming
to the internationally agreed tax
information standard, since they
earlier signed a protocol to their
tax treaty with the United States.
This is the 11th agreement for the
exchange of information in tax
matters signed by Switzerland
which meets the OECD standard. 
The US financial regulator,
the Securities and Exchange
Commission (SEC), voted
unanimously to boost oversight of
credit rating agencies.
In a separate vote, the
commission decided to propose
a ban on flash orders, where
investors are able to see orders
a fraction of a second before
they become public, providing
an advantage to those with
technology powerful enough to
make use of the small time gap.
Prime Brokerage
JP Morgan created a new Prime-
Custody Solutions Group, which
will focus on delivering the
company’s integrated custody
and prime brokerage platform.
The team will work with asset
managers and hedge funds which
are looking for a combined prime
brokerage and securities services
offering. n
For more news, as well as features,
events and video interviews, visit
www.isj.tv
19/10/2009 10:51
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1-13 ISJ43.indd 5 19/10/2009 10:51

 News Analysis
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Custody concern of EU rule draft
Domiciliation issues in alternative fund proposals may hit asset services.
Despite the announcement
from Poul Nyrup Rasmussen,
the prime sponsor of the
controversial EU Alternative
Investment Directive, that the
draft rules would undergo a
thorough review, concerns
are still rife as to the potential
impact on custodian and sub-
custodian relationships.
As things stand in the
proposals, managers with
non-EU funds would be able
to apply to have their funds
accepted for distribution in
Europe.
However, the Directive
also proposes that any such
non-EU funds applying for
an EU “passport”, would need
to appoint an EU-domiciled
custody provider.
The Compliance Exchange,
an online news and ideas
exchange forum for risk and
compliance professionals
(http://compliancex.typepad.
com) points out that US
custodians, such as BNY
Mellon, JP Morgan, and State
Street Corp, as well as non-EU
players such as UBS and AG,
may not qualify.
The Compliance Exchange
quotes Sheenah Gordon-
Hart, the London-based
head of regulatory strategy
for JPMorgan Worldwide
Securities Services in Europe,
the Middle East and Africa,
as saying: “Everybody in the
industry is taking this very
seriously. While it is not
necessarily life-threatening,
we all need the criteria to be
workable, cost-effective and
principled — not one that
shoots from the hip.”
The Directive argues that
since the risks associated with
alternative investment funds
lie at the manager level, it does
not really matter where the
fund is domiciled as far as the
objectives of the Directive is
1-13 ISJ43.indd 6
concerned, provided the fund
management is in the EU.
“However,” it says, “certain
third-party services, for
example, valuation and asset
safe-keeping, are critical to the
protection of investors yet are
often conducted off-shore for
certain types of AIFM. In these
instances an effective response
to the risks would require
effective controls to be put in
place for these activities.”
On 26th and 27th February,
well before the Directive
appeared, the European
Commission organised
a debate for “emerging
policy issues” that included
representatives of the
alternative investment industry,
as well as Jean-René Giraud,
director of development,
from the French business
school, EDHEC’s Risk & Asset
Management Research Centre.
In Giraud’s view: “Because
the regulator (any regulator) is
rarely able to prevent all risks
through systematic control of
industry practices, it seems that
a structure whereby control is
mutually organised throughout
the industry is (a better way to
go).”
In particular he advocates
reinforcing the responsibility
of the administrator/custodian
insofar as pricing the financial
instruments of the fund is
concerned, and also called for
increased transparency on the
nature of the risks incurred
by underlying investments
– including liquidity risk, so
that investors understand in
advance what the liquidity
parameters of the fund are,
particularly in a funds of
funds situation with illiquid
underlying funds.
Custodians have been used
more frequently by hedge
funds in order to segregate
certain assets from their prime
broker. However, this is only
for funds with deep pockets,
as custody fees often price
out a number of managers
already under pressure from
redemptions, asset value falls
and the need to post decent
returns for their broker.
Some might say the
instituting the formal
segregation of assets and
independent responsibility for
valuation and control, along
with greater transparency
of financial risk would be
Sibos 2009: ISJ
reader reaction
This year’s Sibos conference
retained its importance in
the diaries of many movers
and shakers, despite previous
concerns of a decline in
numbers.
Peter Sandhu, CEO of
Synergy Financial Systems
(attended), told ISJ: “Sibos
for us is more a networking
event than anything else. It’s
part of being the community
– everybody’s there so it makes
it really easy to talk to SWIFT
and partners.
“This year’s Sibos was a little
bit quiet. It certainly wasn’t as
good as last year. But I think
it will be busier in Amsterdam
next year.”
Sébastien Danloy, global
head of sales and relationship
management at Societe
Generale Securities Services,
said: “This year’s event was
well attended by senior people
– maybe fewer junior people
attended but as far as meeting
the people who count in our
industry, they were definitely
ISJ Investor Services Journal
far better than suggesting
that a new regulatory regime
can foresee all risks and can
intervene dynamically to
forestall poor practices.
At the time of writing there
was no certainty that major
issues such as the protectionist
stance of the Directive or the
exclusion of global custodians
from outwith the EU would
in fact be eliminated from the
Directive before it passes into
law in 2011. The sector still has
a fight on its hands. n
all at Sibos.
“For a Sibos taking place in
Asia, it lived up to expectations.
I didn’t see much difference in
attendance to the Sibos that
took place in Sydney.
“We were in China, and
China is of course a very
important subject. So there
were a lot of questions and
discussions on Asia and
China and how the various
organisations were positioning
themselves in that particular
market.”
Deborah Culhane and
Laura Pollard from Fidelity
ActionsXchange, who did not
attend, said it was still on their
radar for future years despite
other commitments this year.
Goran Fors, global head of
custody at SEB, said: “It was a
great turnout, I was positively
surprised. There was also a
good presence among the
people who did come, from a
high standard of institutions.
In general, the atmosphere was
great.” n
19/10/2009 10:51
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1-13 ISJ43.indd 7 19/10/2009 10:51

 Executive profile
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
Meeting the challenges
Craig McGlashan talks to Laura Pollard (left) and Deborah Culhane of
Fidelity ActionsXchange about the company’s new innovations.
­ ike parent company Fidelity, Laura
L They explain that
Pollard, executive vice president and
Deborah Culhane, chief operating officer
of Fidelity ActionsXchange, are Boston
born and bred. Also like the company,
the two have had a successful year – with
“wind in our sales,” according to Pollard.
Since taking up their current positions
at Fidelity’s corporate actions solutions
arm ActionsXchange, the two University
of Massachusetts alumni have taken
on around ten client implementations,
leaving ActionsXchange with more than 50
customers.
Despite their similarities, Pollard
and Culhane have experienced different
routes to their current roles. Pollard has
spent her entire career at Fidelity and has
moved through a range of departments –
“always working with customers and new
products” - before reaching her current
role as executive vice president, where she
is responsible for ActionsXchange and
oversees its daily operations.
Culhane began in the US Treasury
where she led the examination of some
of the largest US banks’ investment
operations activities and developed an
expertise in overall compliance, risk
management and operational controls. announcements.
This gave her “a great background in
risk assessment and controls”. She then
moved to Allmerica Financial where she
became corporate vice president, and then
eventually became executive vice president
of North American Operations and
Product Development for Computershare.
At ActionsXchange she oversees finance,
technology, operations, risk and
compliance, and contributes to company
strategy.
Pollard’s experience in client-
facing roles appears to be beneficial for
ActionsXchange’s goals. The company
began life 15 years ago as a system for
Fidelity’s own products, before being made
available to commercial clients three years
later. These clients are “pretty diversified”
Pollard explains – including asset
managers, broker dealers, banks and hedge
funds, from back office to front office.
Clients’ wants and needs are mentioned
numerous times during the conversation.
1-13 ISJ43.indd 8
face-to-face meetings
are invaluable during
the turbulence that
has hit the global
economy and
preparing for the
regulation that has
been proposed to
deal with it.
“I think recent
events have definitely
helped our business and have helped
redefine our service strategy,” says Culhane.
“We spent a lot of time listening to what
our customers’ challenges are. It’s helped
me contain my cost in an environment
where I’m increasingly challenged by
regulatory oversight, potential regulatory
change and transparency rules.”
So what has this meant for
ActionsXchange’s business strategy?
Pollard explains that the last year has seen
the firm build on its “core capabilities”
of corporate actions expertise to provide
complementary market information.
In June for instance, ActionsXchange
introduced US regulatory filings as
an attachment to corporate action
ActionCompare, a service which
compares ActionService corporate action
data to a client’s custodian or proprietary
data, is another area in which the firm is
branching out from its corporate action
roots, explains Pollard.
“It’s marketed for corporate actions
processing, but it can also be used to
take in other sorts of data elements. If
customers are interested in counterparty
risk, we are already taking in position files
from clients who are bringing in their
custodian files. We can bring in additional
information that helps customers see what
they have and how much of it that they
have and the relationships between the
different securities.
“Something that may have been of use
during the collapse of Lehman Brothers
last year,” she adds.
Few would argue that the financial
world is undergoing significant change,
but fewer still are willing to predict what
ISJ Investor Services Journal
the landscape will look like once the dust
has settled. Flexibility will be key in the
corporate actions domain, Culhane says.
“Corporate actions is not a static
environment,” she adds. “There is no
simple template that this is ever going to fit
into, because corporations are consistently
looking for better and new ways to raise
capital for either funding their own
operations, or to raise capital for an
opportunity of acquisition that exists.”
The drive towards flexibility has
been aided in part by the adoption of
a software-as-a-service (SaaS) pricing
model for the firm’s clients, which offers
“several benefits”, Pollard explains, on top
of the cost savings gained from effectively
outsourcing the maintenance and support
of systems.
The SaaS model allows users to access
systems via internet browsers, providing
global access. “It’s a great solution if your
organisation has a global presence and you
want people accessing the same data,” she
says. “It helps promote consistency and
standards especially where you are trying
to manage risk.”
Further extension and automation will
also be at the heart of ActionsXchange’s
future, according to Pollard. “What we
are hearing from our customers is the
need for an end-to-end solution,” she
explains. “We are actively exploring –
and that’s the key word, exploring – the
extension of our technology to automate
the full event management lifecycle to
include reconciliation and reporting but
even to include investor disclosure and
communication.”
Watch a video interview with Laura Pollard
on ISJ.tv. n
19/10/2009 10:51
 Bottom line:
We don’t offer you endless possibilities. Just one solution
It can take 50 good ideas to lead to one bright solution. At ING Global Securities Finance,
our commitment to clients is all about delivering optimal strategic solutions. We help you
succeed by leveraging our expertise to keep you and your business empowered.
Contact us at gsf@ing.com

ING Wholesale Banking is a marketing name of ING Bank N.V. ING Bank N.V. is registered by the Authority for the Financial Markets. Copyright ING Wholesale Banking (2009).

1-13 ISJ43.indd 9 19/10/2009 10:51

 Technology ISJ Investor Services Journal
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Got the message?

Criticism of SWIFT’s pricing and accreditation models could lead to a
strong challenge in the messaging space, finds Craig McGlashan.
connectivity thorugh higher license fees,
while their correspondents have already
paid for the traffic. The true cost of a
message is therefore many times higher
than the published rate.
As SWIFT is an industry utility working
for the benefit of its members, I believe
that their software products should be
free of charge, and the emphasis placed
on a ‘pay-as-you-go’ system of transaction
charging to cover all traffic and interface
license fees,” Bright explains.
Bright compares this situation to
mobile phone users who must pay for

“Trying to create
a global financial
It may surprise some that Paul the opportunities afforded by the internet
services messaging
Reuter, the founder of Reuters press
agency, used carrier pidgeons as recently
revolution.
A quick search of SWIFT’s online
standard is like
as the 19th century to transport news
and stock prices. Police departments in
history for the word “internet” turns up
no results. That is not to say that the firm
trying to boil the
the Orissa state of India only replaced does not offer any services like support or
downloads over the internet, but in the
ocean”
the birds for the internet for emergency
communications as recently as 2002. words of ex-SWIFT employee Graham
Bright, managing director at Financial
Hugh Cumberland,
SWIFT, the global financial messaging
network, has enjoyed similar domination Tradeware, SWIFT thinks of the internet

BT
over thius area of financial communication “more as a threat than an opportunity”.
in the last few decades, but could the In particular, common delivery of ASP
internet also make SWIFT go the way of a web-based internet services should be
cousin of the pigeon - the dodo? making SWIFT question its fundamental
pricing models, he believes. calls they receive from abroad. But he adds
The Society for Worldwide Interbank
“I think they should be giving away there is one key difference: that instead of
Financial Telecommunication – to give it
their software and promoting messaging a cost added to the bill at the end of the
its full title - allows banks and institutions
and looking at transaction charges month, the user will be told that he or she
to communicate electronically. The
which will then cover all the costs of the needs a new phone.
company began in the 1970s, with a
interfaces,” Bright explains. Bright’s company offers a bureau
“handful of people and an ambitious idea”
There are two issues, he says: interface service to firms wishing to join the SWIFT
in Brussels. The group - with the support
charging and moving to a transaction- network but he believes the SWIFT pricing
of more than 200 banks from a range of
based model. mechanism is not conducive to good
countries – began creating a common
Currently, SWIFT offers users reduced business.
language for international financial
traffic costs depending on the volume “If I want to bring 100 new smaller
transactions along with a standard
of messages sent. However, these savings players onto the network and our bureau
communications link.
are inconsequential compared to the traffic increases, we have to absorb
SWIFT went live in 1977, and by 1978
higher license fees for interfaces if they additional individual license fees or pass
the network had processed 10 million
reach a certain threshold of messages, as that cost directly to the user,” he says. “It
messages. It was the dominant player
interface charging is based both on both seems illogical that those livcense fees
in the financial messaging space for a
messages sent and received - something may be far greater than some vendor
number of years and is the organiser of
Bright describes as “penalising, nowt applications that drive business.”
the yearly Sibos event. However, voices in
rewarding, those looking for economies Hugh Cumberland, product strategy
the industry have expressed discontent at
of scale”. He adds that a high volume net director of secure messaging at BT Global
some of SWIFT’s policies – and a range of
receiver of trtaffic pays for the privilege of Banking and Financial Markets – a rival
competitors have sprung up, buoyed by

10

1-13 ISJ43.indd 10 19/10/2009 10:51

 ISJ Investor Services Journal
of SWIFT – disagrees with this sentiment.
His company also includes a licensing
system for bureaux but argues that “when
users get to a certain messaging level
they have to invest in a new platform
because there is a finite limit to what one
individual gateway can support in terms
of number of messages and number of
customers”. But he adds that the costs for
the BT infrastructure and messaging are
“reasonably modest”.
How does Cumberland – another ex-
SWIFT employee - believe the BT offering
improves on SWIFT?
“It is a fully managed service, end-
to-end, which makes the overall cost of
ownership very favourable,” he explains.
“You don’t need to buy expensive software,
you don’t need to buy hardware to run it
on, and you don’t need to pay a consultant
to come in and test it and install it for
you and do the annual upgrades. That’s
all included in the very modest service fee
that we charge.”
BT’s Settlenet services processes around
four million messages a day and has now
processed more than 10 billion messages
since its inception 13 years ago. BT also
has around 12,000 financial services firms
connected to its IP network worldwide,
from banks to hedge funds.
BT is not the only other company
offering financial messaging services
however. EMXCo has a message system
which was responsible for routing more
than 2.4 million messages in August 2009,
equating to more than EUR6.2 billion in
funds flow. The system is used for services
such as risk mitigation, settlement and
valuations.
“Our client portfolio of around 97
providers includes both on and offshore,
retail, institutional and hedge funds,”
explains EMXCo CEO Yannic Weber.
“We have around 339 intermediaries
including stockbrokers, banks,
asset managers, fund of funds, fund
supermarkets, wrap platforms, life
companies, IFAs, pension administrators
and pension funds.”
The range of clients of BT and EMXCo,
from multinational banks down to hedge
funds with just a handful of clients, is
another area where some are concerned
that SWIFT is being left behind.
“SWIFT is not visible in the hedge
fund market - they want to be but they
are driven mainly by message standards,
syntax and sale of interfaces, not by the
primary operational demands of the
industry,” explains Bright. “A small hedge
fund with a few high value messages a day
won;t use SWIFT. They will execute deals
1-13 ISJ43.indd 11
by phone, use internet-based custodian
links and or alternative free messaging
platforms, and use multiple brokers.
They are very unlikely to use SWIFT for
settlements, and most likely outsourceany
messaging to a SWIFT-enabled
administrator.”
ONe of the reasons businesses continue
to use SWIFT is because it is seen in
the industry as offering security. Peter
Sandhu, an ex-SWIFT employee and CEO
at Synergy Financial Systems, a service
bureau, explains that SWIFT offers extra
value over BT as it validates the messages
it processes and uses a store-and-forward
network, meaning messages can be
retrieved months after they have been sent.
However, this model may not be to
everyone’s taste. SWIFT received some bad
publicity recently when it emerged that
messages between European banks were
being stored in a data centre in the US
– effectively allowing the US Treasury to
“[SWIFT] should
be giving away
their software
and promoting
messaging
and looking at
transaction charges”
Graham Bright,
Financial Tradeware
examine transactions that had been made
in the European Union.
While this problem should be mitigated
as a result of a new SWIFT data centre
in Switzerland, some are unhappy at the
perceived lack of privacy – something that
could be seen as impacting on SWIFT’s
reputation for security, according to BT’s
Cumberland.
“In terms of security BT is every bit
as good as SWIFT,” he says. “Every time
you open a message or every time you
take a copy of a message you create an
information security risk. So BT doesn’t
take a copy of the message on the gateway
or the network and it doesn’t open it
either. So it’s a completely private exchange
of information. That really mitigates that
information security risk.”
Cumberland adds that store-and-
11
Technology
forward networks were state of the art – in
1977. He argues that the technique was
used when servers were less reliable and
copies of messages had to be stored –
“these days, servers and networks can be
kept up 14/7”, he adds. “We’ve provided
100% availability on Settlenet over the
last five years and 100% availability on
Managed Secure Messaging – both IP
based.”
While Synergy’s Sandhu is a fan of
the store-and-forward approach, he does
admit that BT certainly beats SWIFT
in terms of price. “BT is looking at the
number of kilo characters that they
send, along with a standing charge for its
gateways, on a fixed annual charge,” he
says. “SWIFT’s pricing model is a lot more
complicated than that: it’s based on various
different elements, and they still charge on
the number of characters you send over the
network.”
SWIFT also has a role as a forum for
the creation of financial message standards
and offers a system for third-party vendors
to be recognised as SWIFT-accredited.
However, there are concerns that the
multitude of standards that SWIFT offers
accreditation for are not always necessary.
Sandhu explains: “It’s just not feasible
to get involved with all the accreditations
they come out with. We tend to cherry pick
the ones we think are going to be useful to
us in the business.”
However, Financial Tradeware’s Bright
goes one further: “If you’re a small vendor
and you want recognition as having SWIFT
messaging capability, SWIFT has a well-
established vendor programme enabling
companies to get technical support,
standards information, courses and access
to a message test bed. However, if you
want to earn a product accreditation from
SWIFT, which in no way guarantees fitness
for use, you have to pay a hefty amount
per application. The proof of application
suitability is not whether it can support a
specific MT or MX format, as this is just
one small element of application selection,
but how it meets the individual customer
requirements.”
Some vendors – who did not want to go
on record - have also been unhappy that
in some instances, SWIFT has evaluated
their software to ensure that it is SWIFT
compliant, and then a few months later
launched a similar product on to the
market. Few of these believed that the
SWIFT offerings were true “competitors”,
given that they were a poor quality of
product, but they were unhappy at the
behaviour of a company with which they
were supposed to be a “partner”.
19/10/2009 10:51
 Technology
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
This has led to some calls that SWIFT’s
commercial arm should be separated
from its standards division, but BT’s
Cumberland is not one of them.
However, he does feel that standards
coexistence is key, rather than standards
convergence. “The old quote comes back
to mind: the nice thing about standards is
that there’s so many to choose from.
“Trying to impose a global financial
services message standard that covers all
business is like trying to boil the ocean. It’s
such a wide, diverse industry, with so many
different strands, so many different types
of customers, there will always be multiple
different standards and it’s the job of
technology vendors like ourselves to make
that life easier for customers by helping
them with the problem.”
Others in the industry also think that
SWIFT has a thankless task when it comes
to providing standards that suit everyone.
Bill Mew, External Communications
Specialist at IBM Global Business Services,
likens SWIFT to the United Nations.
“There are some things about it that
you wouldn’t do if you were designing it
now, just like SWIFT – nobody’s saying
it’s perfect, but it’s possibly the most
appropriate body at this moment in time.”
Nigel Solkhon at IBM and also ex-
SWIFT, adds that the creation of standards
is an important role, regardless of the
difficulties that must be faced to create
them. “Standards are a pain, but they are
the biggest gain,” he says.
So what of the future for SWIFT?
The company is moving towards the
internet, particularly with the SWIFTNet
offering, but progress is slow, according to
Cumberland.
“It’s purely because SWIFT carries a lot
of messages, it has a lot of counterparties,
and because they all use the same message
standard they all march to the same beat
of the drum, meaning they have to move
forward as a community and that will take
probably as long as the slowest member.”
SWIFT certainly does not seem to be
going anywhere soon. Indeed, Financial
Tradeware’s Bright points to a “special
feeling” about SWIFT messages among
financial companies.
But the alternatives are certainly
beginning to rear their head and be
noticed. The pigeon continues to be the
messenger, but if it fails to change its
feathers in line with the rest of the world,
it may find itself surplus to requirements.
SWIFT declined to comment despite
repeated invitations. n
1-13 ISJ43.indd 12
New rules in Poland
Rule changes for short
selling in Poland could
be good news for
industry players, writes
Kimberley Ferguson.
This summer, Poland took a step
closer to western European standards
by changing key legislation surrounding
trading and securities.
On the 16th July, 2009, articles 3, 7, 19,
28, 50 and 94 of the Polish Act of Trading
in Financial Instruments were amended,
after analysis with current legislation of
the more developed financial markets
deemed it somewhat comparatively
disadvantaged.
The amendments to the Law on
Trading in Financial Instruments were
aimed at making short selling more
efficient. The amended legislation
contains requirements which need to be
met in order for securities to be sold in
situations where the seller does not own
the securities at the moment of trade
execution, for example, in short selling. at 130%. In the opinion of experts, the
According to the new rules, these types
of transactions may be executed if the
seller has concluded an agreement with an
entity responsible for the clearing of the
seller’s transactions, and the agreement
contains terms and conditions for the
purchase and timely delivery for the
transaction to be cleared and settled.
The seller also must conclude an
agreement that allows the clearing agent
to perform a securities lending operation
on the seller’s account should the seller be
unable to deliver the securities on time.
At the same time, following a proposal
put forward by KDPW (Krajowy Depozyt
Papierow Wartosciowych, or National
12
ISJ Investor Services Journal
Depository for Securities), rules were
introduced to ensure the mandatory
flagging of sales orders being sent to the
regulated market, which could potentially
lead to a short sale transaction being
executed.
“This was so they could be
differentiated by the Warsaw Stock
Exchange (WSE), enabling them to
monitor and limit the amount of short
sales occurring in the market” explains
Iwona Sroka, president and CEO of the
KDPW.
Further, the WSE and KDPW are now
obliged to describe in their regulations
the additional requirements related to
their new management of short selling
mechanisms. It is understood that
following the introduction of these
regulations, there will be a significant fall
in the risk of a short sale transaction failing
to settle on time.
Amendments to securities lending
and short selling law are part of a
bigger package that adjusts Polish legal
framework to fit the Markets in Financial
Instruments Directive (MiFID) which
replaced the Investment Services Directive
(ISD) in November 2007.
MiFID is a major part of the European
Union’s Financial Services Action Plan
(FSAP), which is designed to help integrate
Europe’s financial markets.
So why was it decided that the Polish
Act of Trading in Financial Instruments
needed amending? “The law was quite
restrictive in its rules for short selling,” Ms
Sroka says.
“For example, the execution of a sale
order equated simultaneously to a lending
agreement, for which collateral was set
provisions of this law stalled the growth
of the securities lending market, making
the Polish market less competitive in
comparison to other European markets.
The new changes being introduced will
help support short selling in the Polish
capital markets, and also, align these more
closely with similar standards in other,
more developed markets.”
“It has been acknowledged that
generally accepted standards for securities
lending agreements need to be introduced
in Poland, which allow for the unrestricted
freedom of the execution of securities
loans, as is the case in other developed
financial markets,” says Ms Sroka. “The
19/10/2009 10:51
 ISJ Investor Services Journal
most important market institutions have
followed the recommendation of the
WSE and KDPW by bringing together the
representatives of brokerage houses and
custodians, and adopted a set framework.” Mr Popiolek. “So far there is not much
This framework is the lending
agreement prepared by the International
Securities Lending Association (ISLA),
known as the Global Master Securities
Lending Agreement (GMSLA), along
with a Polish Supplement, which defines
in detail the terms and conditions
for applying the standards to entities
operating in the Polish market. Moreover,
in order to allow the regulations on
making financial instruments lending free
of stamp duty clearer, it was proposed that
this tax relief be introduced directly into
the wording of the legislation.
Jacek Popiolek, head of domestic
securities finance, Deutsche Bank Polska,
believes that these amendments will
significantly help to regenerate the Polish
securities lending market.
“In general, the upcoming law change
deregulates short selling and securities
lending enough to stimulate an increase
in traded volumes, and also add necessary
liquidity to the Polish market. Current
legal framework describes the short selling
process in a very detailed and restrictive
manner.”
The short seller is not only forced to
enter into a securities lending master
agreement with the executing broker, but
also follow specific rules for collateral: 50%
of order value before execution, and not
less than 130% after settlement.
Withdrawal of collateral is allowed
above 150%, and, in some cases, collateral
may only be pledged, and no tri-party
solution is possible.
The new law will bring a completely
different set of rules, allowing short sellers
to borrow securities from different entities
rather than just the executive broker, and
enabling one to agree collateral terms with
the lender directly.
Mr Popiolek gives the example of
credit worthiness and volatility deciding
on haircuts, rather than decree. Although
the new Act of Trading in Financial
Instruments introduces a market driven
approach to short selling and securities
lending, it does not fully de-regulate the
process. “Some of the current security
rules are going to exist in the regulations
of the organised markets (for example,
the Warsaw Stock Exchange), as well as in
the detailed law governing the activities of
custodian banks and brokerage houses,” he
says.
Deutsche Bank Polska also has ideas
1-13 ISJ43.indd 13
on ways to increase securities lending
transactions. ‘’Another topic being
introduced into the public discussion is
that of the use of close-out netting,” says
clarity around this topic, therefore, most
lending relationships in Poland assume
the lack of collateral netting, which has
a negative impact on the supply side
and volumes. Although it is hard to give
specific deadlines yet, the legislation
process is advancing, which means that
this show stopper will also be finally
removed in the future.”
Adam Maciejewski, a management
board member of the Warsaw Stock
Exchange, has put forward more ways to
“It has been
acknowledged that
generally accepted
standards need to
be introduced in
Poland”
Iwona Sroka, KDPW
boost volumes of transactions and levels
of liquidity in the Polish market. “In co-
operation with the KDPW, we are going to
create a platform to trade securities.
“This platform will be intended for
institutional investors, and in the first
stage, will give them an opportunity
to trade bilateral securities lending
transactions in the same way as on the
OTC market- without standardisation. “In
the future, we are going to trade securities
lending in the form similar to financial
instruments (like derivatives), with the
KDPW acting as a central counterparty.
We are going to popularise short selling
transactions and securities lending-
especially among institutional investors
who are the natural source of securities
lending supply- and since Polish pension
funds cannot lend securities without a
special decree, we are going to take action
to convince the relevant ministry to issue
proper rules, so they can do so.”
There is evidence of an overwhelming
desire to Westernise the Polish securities
lending market. But with the increased
scrutiny- for example, the flagging of sales
which could potentially be short sold
13
Regulation
- will this increase the western markets
participation in Poland, or could it
potentially act as a deterrent?
As Mr Popiolek points out: “The
flagging of short sales is not new to
international markets. In some of the ‘new’
markets, this is already in place, such as
in Hungary. Therefore, the most obvious
road block- a system development need-
shall not materialise, as brokers- both local
and remote- should have all the necessary
infrastructure in place. The short selling
bans in various markets may lead to an
assumption that Polish market regulators
will force monitoring of such activity as
well, so either a flag or extending reporting
in place.
“A securities loan in case of a seller’s
default will become an additional step
between failing settlement and a buy- in
procedure of the clearing house, a kind
or forced auto fails coverage. This rule
impacts brokers, as they ought to sign up
at least one supplier in order to provide
short selling to their clients.”
Mr Maciejewski agrees: “The Warsaw
Stock Exchange is absolutely convinced
that such restrictions will not be a
deterrent for any market participants.
In fact, such restrictions give us certain
control over the risks coming from short
selling transactions. In our opinion, short
selling control provided by stock exchanges
or financial supervision authorities is
expected by market participants.”
Mr Popiolek adds: “Some of the
regulations in the Act in Trading in
Financial Instruments, such as the selling
of the National Depository of Securities
shares by Polish Central Bank, have raised
political discussion, which caused a major
delay in the implementation of the law.”
In Poland, once a law has been
approved by the Constitutional Court, as
it has here, it goes to the Polish president,
Lech Kaczynski - who is the head of state
and has the power to veto this legislation.
The president is currently reviewing
this change in legislation with the Polish
Parliament. There is no fixed term for this
activity, but once the new bill is signed by
the President, the new Act on Trading in
Financial Instruments will come into force
within 14 days.
Mr Popiolek said: “Following this,
the detailed regulations on this act- for
example, on the brokerage houses and
custodians banks activity- come into force
with an assumed delay allowing market
participants to adjust their processes and
systems. I see the Polish market to be in the
fully new law regime some time in the first
half of 2010.” n
19/10/2009 10:51
 Credit Rating Agencies
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Credit ratings
Credit rating agency reform and the alternatives is still a strong and
timely debate, finds Ben Roberts.
Timothy Geithner, US Treasury
secretary, offered a prologue to last
month’s meeting of G20 finance ministers
in a newspaper article that articulated
the grounds for unwinding the fiscal
and economic stimuli that have acted as
a market “safety net”. He added a final
warning that credit ratings agencies –
along with other areas such as derivatives
and securitisation – could expect tougher
regulation.
The scrutiny and backlash aimed at
credit rating agencies has existed since the
beginning of the financial crisis. Before
recession was a threat for many countries,
the fallout from the use and trading of
complex instruments such as mortgage
backed securities (MBS) was partly defined
by accusations aimed at the companies
that provide risk analysis.
The debate typifies wider discussions
concerning corporate governance,
accountability, and the tools for risk
management in the middle office of
financial institutions.
The creation of ‘structured’ and often
opaque MBS instruments containing
mortgages became viewed as the dark
side of trading innovation as the credit
crisis hit. The freeze in interbank lending
was chiefly linked to these structured
products that were starting to default
indiscriminately: an institution could not
borrow money if it was suspected to incur
huge losses -or brought down entirely -
from these failing products on its books.
The proliferation of such instruments
was encouraged by their top, triple-A
rating given from apparently independent
rating agencies. This widened the blame
pool as credit market fear spread.
It led to calls for reform, including
new disclosure requirements concerning
the methodology used to rate securities
and financial institutions, and a fresh
look at the conflict of interest between
the analytical and commercial sides of the
agencies.
John Hull, Maple financial professor
of derivatives and risk management at the
Joseph L. Rotman School of Management,
University of Toronto, said that a key
problem that faced these agencies is
that they don’t have the same depth of
14-19 ISJ43.indd 14
experience and history to draw upon to
rate these so-called ‘structured’ products as
they would with simpler assets.
The rating agencies, he says, “have
got 100 years of history ratings bonds,
and they’ve got pretty good at it. The
market started changing [with] structured
products, then hybrid products. They’re
the things causing the problem for the
ratings agencies as they don’t have the
history to draw on.”
He adds that one problem with
structured products, unlike equities and
bonds, is that they are composed of many
different financial instruments, such
as bundles of mortgages. This creates a
problem of correlation that is difficult to
assess as a rating agency.
“Structured products have the factor
of correlation: how correlated are the
mortgages or instruments in the pool used
to create the product?”
In truth, a reform to the sector had
been mooted before the crisis. In 2006 the
Credit Rating Agency Reform Act gave
the Securities and Exchange Commission
(SEC) exclusive authority over the
registration and qualification of the
companies offering the service.
This April, the G20 countries called
for a co-ordinated approach to reforming
the regulation within which the agencies
sit. On 21st July 2009 the Treasury sent
Congress proposals for full reform of the
sector, enhancing the authority of the SEC.
In a statement, the Treasury
acknowledged that investors had become
“too reliant” on the rating agencies that
often failed to describe the risk of rated
products. “This lack of transparency
prevented investors from understanding
the full nature of the risks they were
taking,” it said, and vowed to ensure
14
ISJ Investor Services Journal
correct transparency and oversight in
the future. The proposed guidance and
compliance changes are still pending.
This summary is the latest point of
view in a nuanced industry debate. In
a comment piece in Investor Services
Journal in January, Standard & Poor’s
emphasised that a rating is simply “one
tool for investors to use in assessing credit
quality”. An over-reliance on this service,
the firm would argue, would be myopic on
the part of the investor.
Last month also heralded a high-profile
return of securitisation, as Volkswagen
revealed plans for a securities issue backed
by car loans, estimated at around EUR500
million. For some this news emphasised
the latest indication of business-as-usual
after a return to profitability of many
banks – and a resumption of the rating
activity for such products.
One area up for reform was the
potential conflict of interest in which
the company undergoing a rating paid
the agency for the service. To combat
this, the regulator aims to prevent firms
from consulting with any company that
they also rate, as well as strengthening
disclosure and management of such
conflicts. Each rating report will disclose
the fees paid by the issuer for a particular
rating, as well as the total amount of fees
paid by the issuer to the rating agency
in the previous two years. Every rating
agency will also be required to designate a
compliance officer.
The SEC’s proposals have led to nods
of acceptance from the rating industry and
the companies they serve and analyse.
The regulator also aims to clamp down
on ‘ratings shopping’, where an issuer may
attempt to ‘shop’ among rating agencies
by soliciting ‘preliminary ratings’ from
multiple agencies and then only paying for
and disclosing the highest rating it received
for its product.
Regulators would now require an issuer
to disclose all of the preliminary ratings it
had received from different credit rating
agencies, so that investors will see the
amount of ‘shopping’ that occurred, and
whether there were discrepancies with the
final rating.
It also mooted the possibility of
07/10/2009 13:38
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 Credit Rating Agencies
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48
multiple ratings for each security and
financial institution. A spokesperson for
Standard and Poor’s told ISJ this makes
sense, particularly as greater disclosures by
the rating agencies must be parallel with
greater disclosure from the rated firms.
“The SEC has said it wants to encourage
healthy competition among ratings firms,
including having multiple firms rating
individual issuers or securities,” he said.
“One way to achieve that is for debt issuers
to disclose more information so that more
ratings firms can form an opinion of
creditworthiness.”
S&P has, to its credit, attempted to meet
the upcoming changes to credit rating
agencies head on with a series of initiatives.
The firm established a rotation system
of analysts, with ‘look back’ reviews in
the second half of 2008 when an S&P
analyst leaves to an issuer. It also created an
Ombudsman to speed unresolved matters
to the McGraw-Hill (S&P’s owner) CEO –
open to public and SEC scrutiny. Since last
year it also has a variety of
Latin American custody
As Latin America’s economies have
gone from boom to bust and back again,
it has had an interesting relationship with
the major global custody players.
But the next few years could be the
real platform for growth. Unlike previous
crises, solid domestic fundamentals,
including the fact that some major
banks remained state owned, gave the
Government some room for manoeuvre
and keep credit flowing, according to
Credit Suisse Brazil’s country manager
Antonio Quintella.
The Brazilian central bank ran down
some of its reserves to keep liquidity
flowing and cut interest rates hard.
Employment in Brazil has been very
resilient. China now accounts for some
14% of Brazil’s exports and the People’s
Republic’s 8% average growth post-
dowturn has helped keep trade with its
fellow BRIC steady.
All of this has meant that demand by
global investors for Brazilian securities
remains high and its equity market
has climbed some 20% since the crash.
Local and global custody players have
no shortage of customers, both in terms
of providing services to local mutual,
insurance and pension funds, and to
14-19 ISJ43.indd 16
oversight boards.
The Risk Assessment Oversight
Committee is independent of S&P Ratings
Services. It provides risk assessment of
S&P’s business strategies and plans and
evaluates emerging risks.
The Policy Governance Group, also
independent of the ratings analysts,
develops and approves all new ratings
policies and procedures. Members of
the Group include representatives of the
legal and compliance teams as well as the
Analytical Policy Board.
So what are the alternatives for risk
management teams when assessing
companies and securities?
The credit default swap (CDS) market
has emerged as one such investor service.
The market for CDSs - insurance contracts
taken out to cover the risk of counterparty
default - exploded at the height of the
credit crisis as financial institutions sought
protection from vulnerable companies. An
analysis of this market – ie, who is seeking
protection from whom – has become a key
The region is
exploding with
opportunities for
asset safekeeping,
finds Anthony
Harrington.
foreign investors.
Brazil’s life industry and pensions
industry have both opened up in recent
years. By 2004 there were in excess of 350
private pension funds in Brazil, with assets
equivalent to around 11% of GDP. A study
by the Brazilian central bank showed
that at least three million medium-to-
high wage Brazilians remain without any
pension, providing a fertile ground for
the country’s emerging private pensions
industry to market itself. This is fertile
ground for custodians as the country’s
fund management industry thrives.
At the end of September 2009, Brazil’s
National Monetary Council, which keeps
a fairly tight control of the country’s
pensions industry, decided that henceforth
16
ISJ |ISJ Investor
Investor Services
Services Journal
Journal
indicator for market participants.
Sarah Nicholson, head of securities
finance at Aviva Investors, told an
audience at a securities lending conference
in London that it was partly due to
recognition as to the limits of the credit
rating agencies. “It became apparent that
credit ratings were not the be-all and end-
all and so we’ve taken to using the CDS
market [in our analysis].”
John Hull also believed the rise of the
CDS market for company analysis was a
sign of the times. “Traditionally, the only
way you can get some idea of whether a
company is likely to default in the next
year or so is to go to rating agencies, look
at what their rating is and any reports
they’ve produced, you can read the
company’s financial statements.”
Instead, he says, the CDS market may
be the most innovative service available.
“We have this very active CDS market
where people are trading exactly what the
company is interested in – the chance of
the company defaulting.” n
mid-sized funds and upwards (those with
assets of USD250 million or more) will be
allowed to invest up to 70% of their assets
in equities, up from 50%.
Brazilian retail and corporate banking
is dominated by Santander, the state
owned Banco de Brasil, Bradesco and
Itaú Unibanco, formed from the merger
of the second and third largest Brazilian
owned private banks (Itaú and Unibanco).
According to The Banker, the new entity
is the first Latin American bank with truly
global prospects and some USD26 billion
in Tier 1 capital.
BBVA is also pushing hard and not just
in Brazil. Vicente Rodero, head of BBVA
South America claims that it has the best
market position of all the banks in South
America, with some 27 million clients.
HSBC is also a formidable force in
the region. It won the best sub-custodian
operator prize in Brazil and operates
custody services in several Latin American
countries including Argentina.
Roberto Cortese, head of custodial
services for HSBC Brazil, points out
that custody services in Brazil are split
between domestic and foreign investment
custody activity. Citigroup is the biggest
player in the latter, with a market share of
T
t
07/10/2009 13:38 JPM_Se
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14-19 ISJ43.indd 17
JPM_SecLend_2i_ad_8.26.indd 1 07/10/2009
8/26/2009 13:38
2:33:57 PM
 Custody
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48
some 51%, with HSBC in second place,
with around 22% of market share. Itaú
Unibanco is in third place with 9% of the
foreign services custody market in Brazil
and Santander is fourth with about 4.5%.
“On the domestic side, which means
providing services to the Brazilian pension
fund sector, which dominates the Brazilian
fund industry, the custody business is in
the hands largely of the big local banks.
Banco Bradesco is number 1, with Itaú
Unibanco in second position, followed by
Banco de Brazil, and HSBC is in fourth
position.”
Mike Kalavritinos, managing director
of Bank of New York Mellon’s Latin
American Asset Servicing Group, points
out that the total funds market in Brazil
is worth around 1.2 trillion Brazilian real,
about USD600 billion. Kalvitrinos says
that 2009 net inflows of funds by foreign
investors into Brazilian securities have
been high, and will probably reach around
USD20 billion.
He points out that CVM, the Brazilian
regulator, has enacted several significant
changes to the rules governing investment
funds in Brazil over the last two years. It
has cleared a two-way path: the entrance
of foreign investment and the overseas
investment of domestic funds.
He adds that prior to the global crash,
the high interest rates and high returns
enjoyed by domestic investors in Brazil
made it seem unnecessary for domestic
fund managers to look abroad for high
rates of return. However, plunging real
interest rates have turned that on its head. what you wanted to do in Brazil before you
“Brazilian pension funds are mandated
to earn 6% above inflation. Interest rates
are currently 8.75% and with inflation
forecast for 4.4% for 2010, it is clear that
fund managers will not achieve these
returns without looking abroad. The CVM
had a long standing limit of just 3% on
the amount of assets pension funds could
invest abroad. It raised this to 10% two
years ago and the current situation is likely
to push investors to use the additional
slack the CVM has extended to them.”
At the same time, the CVM raised the
limits on foreign holdings for Brazilian
hedge funds to 20% and, according
to HSBC’s Roberto Cortese, the local
insurance commission has now created
a special class of local fund that has been
authorised to invest up to 100% of its
portfolio in overseas securities.
BNY Mellon, though it outsources
local custody, is the eighth largest fund
administrator for Brazilian clients buying
Brazilian and foreign assets.
14-19 ISJ43.indd 18
The new freedoms given by the CVM
of allowing more pension fund holdings
to be based in equities makes the Brazilian
market particularly exciting, he says. From
there, the logical next step will be for them
to start buying Brazilian fund of funds,
and after that, they can be expected to start
moving into overseas securities.
Commenting on Mexico, Kalavritinos
says that post the crash there has been a
huge flight of Mexican fund capital out of
US assets and back to Mexican assets. The
largest sub custodians in Mexico are the
Mexican banks, virtually all of which have
been acquired by major foreign banks,
with BBVA and Santander being major
players along with Citigroup.
Hugo Arbat, head of custody and
clearing at HSBC Argentina, says that
while the securities market in the country
has only 110 stocks, the exchange has
“Some borrowers
who really want
Brazilian securities
will double
collateralise”
Ed Oliver,
Data Explorers
more than 100 years of history behind it,
and many US companies are dual listed in
Argentina, with a number of Argentinean
companies dual listing on US and
European exchanges.
The Argentinean pension funds were
the biggest institutional investors in the
market, but their nationalisation in 2008
in a shock “grab” by the Argentinean
government has raised huge question
marks over their future activities. This
leaves the insurance companies and
institutional funds as the major investors
today. A recent regulatory change means
that all local insurance companies have to
have their assets under custody with a local
custodian. HSBC, he says, is one of the
major custody providers for local investors.
There is no securities lending market
in Argentina because the regulators will
only allow banks to lend directly, not to act
as an agent between two parties, a lender
and a borrower. Brazil and Mexico are the
only markets worth highlighting in this
18
ISJ |ISJ Investor
Investor Services
Services Journal
Journal
space, though this is not through lack of
interest. Fund managers are well aware of
the phenomenal performance of the BRIC
countries and Brazilian securities are seen
as highly attractive.
Ed Oliver, global head of consulting
at Data Explorers points out, the rules of
the game in Brazil mean that all securities
lending has to be through the central
depository, an adjunct of the exchange,
which then becomes the counterparty for
the borrower.
The central depository, standing in
the middle of the trade, both restricts fine
tuning of the collateral by either party and
it means that the lender’s clients are fully
exposed to the exchange. If it goes down,
their money is gone.
“The Brazilian authorities know that
this system is hugely unpopular with
the securities lending industry and they
are showing some signs of being willing
to listen. However, what it essentially
means is that some borrowers who really
want Brazilian securities will double
collateralise. They will collateralise in local
currency or Brazilian treasuries, which
are held locally by the central depository.
Then they will put up another subset of
collateral outside of Brazil. This essentially
treats the Brazilian collateral as valueless,
which makes very little sense.”
Thus, if you are a lending agent wanting
to promote new trading opportunities
for a client, you would need to put up a
tremendously convincing case and give
them a vast amount of information about
would have a chance of signing them up.
Securities lending as far as custodians
is concerned is completely different. The
successive reforms of the Mexican financial
system mean that the practice there follows
European and US best practice.
Mexico, the other Latin American
heavyweight, has benefited hugely from
being open to foreign players since its
disastrous economic crisis in 1994.
Andrés Borrego, country head at Credit
Suisse, points out that foreign banks
have invested heavily in the Mexican
financial market over the last few years
and have brought fresh expertise and new
financial products to the market, including
consumer loans, mortgages and “micro-
finance”. Credit Suisse’s history in Mexico
goes back three decades. The bank was the
pioneer behind Mexico’s first sovereign
bond issues and custodial services are well
established with a number of local and
global players. n
07/10/2009 13:38
 ISJ Investor Services Journal Custody

ECB is lending help Analyse

Those still on the
fence about stock
But the ECB has caught itself in a
bind: it argues that a centralised securities
lending facility, such as Brazil tries to
This:
China
operate, can be an efficient mechanism
loans may be to reduce settlement failures, but it
acknowledges that bilateral, often agent-
convinced by the led securities lending processes, are
likely to be hugely more cost effective.
endorsement by the It also wants client assets to only be How has the Chinese
used with their explicit consent, which
central bank, writes aims to eleimate the surprise factor of sub-custody market
participation through pooled funds.
Anthony Harrington. One imagines that entry to these expanded? Andy Ng,
schemes will require trustees to specifically
Despite its emergence into the financial
spotlight, the understanding and benefits
give their consent, with perhaps some
preparing a comprehensive trustee board
head of HSBC Securi-
of securities lending is still far from
unanimous.
educational programme on the subject.
The ECB also wants “supervisors
ties Services, China
In the wake of the Lehman Brothers’
failure and the 2008 financial crash, some
and overseers to have policies in Sub-custody has gained increased
place to ensure that risks stemming recognition in China over the past decade
trustees and fund managers viewed the
from securities lending activities are as the country’s securities markets rapidly
activity at best as an unwanted (and
appropriately managed by entities subject developed. Foreign banks introduced
unnecessary) source of counterparty risk;
to their oversight”. In practice, of course, the concept in the early 1990s, when
at worst, an active contributor to the crash
the whole market is now very alive the B-share market was established for
due to its facility to short selling.
to counterparty risk - reflected in the foreign participation. To mitigate risk in
A number of US pension fund trustees,
collateral management programmes. settlement and clearing and ensure asset
in particular – such as CalPERS and
In recent times, where failed trades security, domestic institutional investors
Hermes - became highly uncomfortable
have become an acknowledged source demanded the role of sub-custodians also
with their fund managers’ securities
of risk, the ECB reminds us that stock be introduced in the A-share market. In
lending programmes. They suspended
loans “generally improves the functioning turn, local banks also started custodial
their lending programmes while they
of securities markets by allowing sellers operations in 1998.
pondered value at risk, the ethical issues
ready access to securities needed to settle Custodian banks took every
and the value of the returns.
transactions where those securities are not opportunity to explain sub-custody to
Smaller schemes who discovered that
held in inventory; by offering an efficient regulators and to urge them to introduce
their stock was out on loan through their
means of financing securities.” the role into the markets’ infrastructure.
passive index tracking fund managers
Again, “the existence of liquid The securities market has since
started jumping up and down and
securities lending markets reduces the introduced more investment products and
demanding explanations. The securities
risk of failed settlement because market welcomed increased participation both
lending industry suddenly had to provide a
participants with an obligation to deliver locally and from abroad. The importance
full justification of its existence, and a full
securities that they have failed to receive of sub-custody is widely acknowledged and
education to trustees and fund managers.
and do not hold in inventory, can borrow there is now always a role for custodians
A useful defence of securities lending
these securities and complete delivery.” to play in new investment products
– as well as an exploration of its benefits
That is what we call a “join-the-dots” and schemes, including those covering
- can be found in the European Central
argument for beginners. Qualified Foreign Institutional Investors
Bank’s 2004 report, “Standards for
The ECB also makes a more subtle (QFIIs), Qualified Domestic Institutional
securities clearing and settlement in the
point: “Securities lending markets Investors (QDIIs) and overseas securities
European Union”*.
also enable market participants to investment funds.
The ECB categorically states that
cover transactions that have already For foreign investors, whether B-share
securities lending “should be encouraged
failed, thereby avoiding any negative investors or QFIIs, their appointed sub-
as a method for avoiding settlement
repercussions from the failure. In cross- custodian in China is effectively their
failures and expediting the settlement of
border transactions, particularly back-to- bridge into the country – interpreting the
securities. Barriers that inhibit the practice
back transactions, it is often more efficient market and educating them about local
of lending securities for this purpose
and cost-effective for a market participant rules and regulations.
should be removed. The arrangements for
to borrow a security for the delivery than Sub-custodians also represent
securities lending should be sound, safe
to deal with the risk and costs associated investors’ interests before regulators.
and efficient,” the report says.
with a settlement failure.” For regulators, sub-custodians bring an
You can’t get clearer than this.
We’ll leave the anti-short selling international perspective, best practices
The ECB directs “the relevant public
argument – which translates for some to and recommendations aimed at improving
authorities” (take note, Brazil) to
an anti securities lending argument - this market infrastructure.
“remove any impediments (e.g. legal,
time round, since it has been hammered With China at the centre of attention,
tax and accounting frameworks) to the
development and functioning of securities sufficiently. n its securities market is expected to widen
lending.” and deepen in terms of scope and the
*www.ecb.com complexity of available products. n

19

14-19 ISJ43.indd 19 07/10/2009 13:38

 Custody
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Meeting client needs in Germany
Bundled or tailored? That is the choice often facing institutional
investors as they seek the best custodial model in the German market.
Germany has seen one of the most
impressive recoveries from the financial
crisis in the last quarter. The resurgence
of many sectors, including banking, has
re-established the underlying strength and
size of the market in a global setting and
vindicated the tight and cogent regulation.
For custodian ‘Depotbanks’ in the
country, it remains a competitive market.
Though regulation requires institutional
investors such as pension funds and
insurance funds to hire a safekeeping bank,
the race for mandates is as strong as ever.
Moritz Ostwald of BHF Asset Servicing
reminds ISJ that the country is one of the
most mature in Europe – including the
20-23 ISJ43.indd 20
IT sector that fuels the banks’ operations.
Maturity creates sophistication, raised
standards, wider service ranges and
constant innovation, and the country
regularly scores highly on global surveys of
customer satisfaction.
The pension industry is especially
advanced in its development and is
built on three elements: social security,
occupational pensions and individual
retirement investments.
The first of these is the dominant and
longest running, a mandatory scheme that
has come under pressure in recent years
due to – like Italy and Japan – an ageing
population, though the country is set to
20
ISJ Investor Services Journal
see an increase in the standard age of
retirement.
Within Depotbanks, servicing the
needs of a wide variety of clients is
a challenge that must be constantly
met. The size and needs of each client
is frequently different, so the actual
composition of services – whether
a number of services are ‘bundled’
together or a client needs a specific
service – can alter greatly.
Ostwald says: “In such a mature
market it is difficult to differentiate
yourself against others by core
products, but at the same time it’s such
an important market our clients are
looking for the absolute best, most
efficient quality, flexibility and personal
support.”
In the market generally, smaller
clients tend to look for full custody
and administration, and Germany has
been as much a hub for the boom in
outsourcing middle and back office
workload as its European peers.
Larger firms and funds that require
custody may spread servicing sources
over two or more providers, often
depending on the specialism of the
service provider.
For foreign investors, the choice
around the breadth of services is linked
with the decision to access the market
through their global custodian, or
to receive direct service from a local
player.
BHF Asset Servicing is an example
of the latter, and has an interesting
setup that has undergone recent
evolution.
The financial services arm of
BHF-BANK, BHF Asset Servicing
provides safekeeping, over-the-counter
settlement, corporate actions and tax
reclaims services. Fund administration
is offered via its affiliate Frankfurter
Service KAG. Certain additional
services are provided via its parent
company BHF-BANK, including
securities lending, foreign exchange
and cash services.
Ostwald says BHF Asset Servicing is
not even a year old as a seperate entity,
19/10/2009 10:53
 ISJ Investor Services Journal Custody

though there remains a seamless link business.”

between it and BHF-BANK as an overall
service to the client.
He adds that Germany is one of the
major markets in Europe that clients are
looking to exclude from their service
requirements from their global custodians.
Instead, more foreign clients are seeking
a specific service for this country, which
often benefits local providers.
“Potential clients – global custodians,
banks, broker dealers – in turn have clients
around the world invested in German
securities. If you are a bank domiciled
in US and Asia with just a small local
business in Germany it might make sense
to have a global custodian.
“However, I see an increasing demand
of banks considering excluding the
German market from their existing
agreement from their global custodian as
Germany has been
as much a hub for
for the boom in
outsourcing middle
and back office
Flexibility is related to the speed and
efficiency an asset servicer can meet each
client’s new requirements. Sometimes
it is possible to add new services to the
original mandate, but sometimes the
custodian itself needs to develop new
capabilities.
There are two key elements to
consider: firstly, is the additional service
demanded by the client worth developing
to offer for future clients; secondly, if it
will be developed, how long will it take?
“If you look at the request, develop
the capability and make clear that it may
take x months [to implement], then I
think this is far more effective and client-
focused, than waiting for other clients “Clients are
requesting the same before starting to
analyse things.” requesting us to
Flexibility – and capacity – is also vital
regarding corporate actions. With class
lobby into our own
actions emerging in Europe and the US
on the back of financial losses (as covered
market. That’s
in ISJ, July/August issue), and the drive
for third party fund administration,
where a local market
shareholder rights is a central topic as
the markets exit the downturn. It means
specialist comes into
they may ask for more detail as to the play”
nature of their representation in global
boardrooms.

Moritz Ostwald,
“A few years ago there was less
workload as its emphasis on voting. Now people

European peers
they need the best service possible and so
go directly into the market.”
Local knowledge, the capacity to
‘tailor’ services, and the speed to react to
market changes are three key benefits of
local service. Still, however, institutional
investors have two additional concerns:
cost and flexibility.
There are occasional cost-savings from
using one provider. But Ostwald points
out that with the default of Lehman
Brothers’ still fresh a year on, there is less
appetite for the investor to put “all their
eggs in one basket”. This creates a tough
decision for clients in choosing between
diversification and costs. “It has become
more important to spread the risk and
have a ‘back up’ custodian in place to share
the responsibilities.
“In the downturn it might become
more expensive. Price is important but on
the other hand it’s more important to have
the quality for the price; the third pillar is
credit rating as well as commitment to the
know they have to take care of their
voting rights, demanding not only the
instructions but specific reporting for
every vote they had.
“For example, we send a detailed
report to clients in those very rare cases
where a voting agent did not follow
100% the voting instructions given by
our clients, thus ensuring a high level of
transparency nowadays demanded by
their auditors.”
Ostwald adds that the speed of
corporate actions service, including
processing votes right up until deadline,
is another strength of a local provider.
Further, an investor may also consider
during its request for proposal (RFP) how
effectively a provider can lobby for his
own ideas.
Legal expertise is another service
increasing in importance and relevance.
Though a Depotbank is not technically
an adviser, the custodian needs to be fully
versed in new or upcoming national and
international rules. It’s a two-way street,
says Ostwald: “On the one hand you need
certain experience in your own group to
inform your client adequately on legal
21
BHF Asset Servicing
and fiscal developments.
“On the other hand, when talking
about regulation, clients are requesting
us to lobby into our own market. That’s
where a local market specialist comes into
play: although not the largest in size, BHF
Asset Servicing is well connected within
the German financial services industry
and is perceived as a specialist institution
for custody in the market, which is also
important for its customers: to have a
presence through their sub-custodian.”
Beyond the size and domiciliation of
investors entering the German market,
there is no “best solution”, says Ostwald.
The selection of securities services by a
client can vary from fellow clients, but
over time too. This is where the flexibility,
knowledge and track record makes
the difference between providers in a
competitive environment – particularly as
Germany continues its global resurgence.n

20-23 ISJ43.indd 21 19/10/2009 10:53

 Panel Debate
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Panel: Risk management today
Professor Ingo Wal-
ter holds the Seymour
Milstein professorship
of finance, corporate
governance and ethics and
serves as the vice dean of
faculty at the Stern School
of Business, New York
University.
1.How much would tighter regu-
lation lead to an improvement
of the risk management func-
tion and investment in financial
firms – and do you foresee more
proactivity on the part of firms
to produce more regular up-
dates and transparent reports
as to their risk methodology?
WALTER: Clearly there will be a
boost in capital requirements,
which will hit both financial ef-
ficiency and profitability.
There will also be some type
of action on compensation and
derivatives trading platforms.
These will be imposed on firms so
proactivity on risk management
won’t do much good.
But it may on ‘prompt corrective
action’ on winding-up systemic
firms, where the debate seems
to be focusing on ‘living wills’.
Firms will have to have prepack-
aged termination and liquidation
plans on the shelf, and these
will be easier to develop with a
more proactive and transparent
approach to risk management.
MISKOVIC: Tighter regulation has
and will continue to significantly
elevate the role of risk manage-
ment, with an increasing number
of companies positioning their
chief risk officer (CRO) within
20-23 ISJ43.indd 22
Maureen Miskovic is chief
risk officer, State Street.
She has significant experi-
ence in this area, including
a previous role as chief risk
officer at Lehman Brothers
as well as head of risk
management at
S.G. Warburg.
their senior management group.
Increased regulation is also
impacting how risk management
is viewed; it is no longer seen
as just quantitative, but rather
as qualitative as well. Since
the notion of self-regulation is
currently being looked at with
apprehension, the regulatory
environment will continue to be-
come more challenging, making
“Regulators and shareholders
will increasingly insist on a do-
it-yourself approach... so that
they first themselves ‘own’ and
understand the key issues”
Professor Ingo Walter
the need to proactively commu-
nicate risk management efforts
of the utmost importance.
McDOWELL: Tighter regulation
will lead to firms producing more
regular updates and transparent
reports of their methodologies.
In a principles-based regulatory
regime, such as the UK, tighter
ISJ Investor Services Journal
Risk management
has been a central
issue during the
financial crisis, and
as banks return to
profits investors will
Bob McDowell is research want to know that
director for Europe at
Tower Group. The topics
he covers include the
systemic improvements
principal challenges and
opportunities in the
continue. ISJ gains
European banking, se-
curities and investment trenchant insight from
management markets.
this month’s panellists.
regulation may lead to more ex-
tensive documentation about the 2.Do you foresee a growth in
rationale behind the formation the amount of external consult-
and setting of risk policies and ing in the assessment of risk
procedures. parameters and the process and
Financial regulators will take use of its reporting?
a forensic auditing approach to
tracing the steps in taking risk WALTER: No. I think regulators
from policy formation to practical and shareholders will increas-
application. ingly insist on a do-it-yourself
In a rules- based regulatory ju- approach in light of what has
happened, so that they first
themselves ‘own’ and understand
the key issues. That does not
mean that consultants cannot be
useful in this process, but I don’t
think outsourcing significant
parts of the risk management
value chain to them is likely to
be more important in the future
– certainly not among systemic
financial firms.
MISKOVIC: Yes, given the height-
ened focus on risk, large compa-
nies will likely look to external
consultants to assist in their
risdiction, the risk methodology in-house efforts to assess risk
is likely to be highly influenced parameters and facilitate report-
and constrained by the rules ing. Smaller companies will likely
governing risk methodologies, rely on external consultants
processes and procedures gov- exclusively to meet these needs.
erning its management control
and reporting. This in turn leads 3.SimCorp Strategy Lab, in a
to more regular updates and study commissioned to The
transparent reports on their risk Nielson Group, found that 76%
methodology. of market respondents believed
22
19/10/2009 10:53
 ISJ Investor Services Journal
an increase in the ‘strategic
influence’ of the risk function
would improve risk manage-
ment. How might this come
about in practical terms for a
financial institution?
WALTER: Risk management
needs to be concentrated at the
business line level where risk is
engaged, and simultaneously ag-
gregated at the firm level where
portfolio-effects and risk-toler-
ance levels can be applied. companies’ business culture, in
This conduit has to function
much better than it has in the
past, and upstream executives
have to understand downstream
risk engagement and risk special-
ists at the business level have
to understand the strategic
perspective.
It may be that risk generalists
will develop in some firms to
make this conduit work, together
with transparent, visibly rational
criteria applied at the center
which cannot be easily end-run
by revenue-producers.
MISKOVIC: Financial institutions
must be able to not only set and
understand their own unique risk
appetite, but also fully integrate
risk management into their
corporate DNA.
Few chief risk managers can
singlehandedly set the tone
for risk-taking in a financial
institution. Instead, risk must be
undertaken at the highest levels
of an organisation by its manage-
ment committee.
It is then up to the chief risk
officer (CRO) to facilitate the
conversation about how much
risk a firm wants to take, what its
risk appetite should look like and
what shareholder returns can be
expected for that risk.
For this process to work best,
the CRO must have direct access
to the chief executive and other
senior managers. This structure
functions most effectively when
it is positioned as both a proac-
tive and reactive strategy for the
organisation.
McDOWELL: Strategic influence
of the risk functions will improve
risk management in practical
terms for the risk manager.
However, only when they are part
of the team that determines and
periodically reviews allocation
20-23 ISJ43.indd 23
Panel Debate
“Few chief risk managers can singlehandedly
set the tone for risk taking. Instead, risk must
be undertaken at the highest levels of an
organisation”
Maureen Miskovic, State Street
approach toward technology
of risk capital to the lines-of-
both a top-down and bottom-up solutions for portfolio and risk
business and asset classes. The
approach, in order for them to be management, many asset man-
risk managers must, therefore,
successful. agers and owners didn’t typically
work closely alongside the e line-
use a consistent platform across
of-business team but they must
McDOWELL: Unless ultimate risk a portfolio to measure and moni-
retain a separate reporting line
management experience and tor risk. This led to incomplete
and be financially rewarded on a
representation legally resides assumptions about risk expo-
different basis.
with the board of directors, sures.
the company opens itself to By contrast, today, thinking
4.Some believe the ultimate
prospective additional legal and about the necessity of technol-
risk management experience
regulatory sanctions in the event ogy has reversed. High-quality,
and representation should
of failures in their risk manage- timely data provide risk manag-
reside among the board of
ment systems and controls. While ers with a solid foundation for
directors. Others believe senior
senior management is certainly having tough, but necessary,
management level, instead,
better positioned on a day-to- conversations with business
is better positioned to influ-
ence the actual workings of a day basis to influence the actual partners. Those who succeed
workings of a financial institu- going forward will have made a
financial institution. Where do
tion, their personal financial consistent investment and com-
you think the answer lies – and
incentive packages should not be mitment to technology.
what might be the other consid-
able to influence the overall risk
erations?
management. McDOWELL: The systems are not
good enough. A key area, where
WALTER: I believe strongly that
5.What areas of internal internal technology will improve
boards should supervise and
technology (ie, risk analysing/ risk management operations,
managers should manage. This
reporting functions) might is improved data management.
means that boards should have
improve the risk management New, additional regulatory
the expertise to understand key
operations – or are the systems requirements demand that larger
issues at the general board level
good enough? volumes of data are available and
and in committees specifically
subject to analysis internally as
charges with risk issues. They
WALTER: It seems to me the well as externally by regulators
should be able to discuss
technology underlying risk and other agencies.
exposures, the sources of risk,
management, while not perfect, The capability of an institution
risk tolerance etc. with senior
has the fewest weaknesses in to move and manage its data
management and risk managers
the value chain. The platforms dynamically across the enter-
and ask penetrating questions.
are generally pretty efficient and prise is essential for making risk
Although widely criticised,
robust, so the tools are there – decision. Data must fulfil acces-
Sarbanes-Oxley already has a
and vendors are always prepared sibility, immediacy and availabil-
governance blueprint that makes
to adapt them. There are more ity criteria across the financial
some sense when applied to risk
problems on the user side than in institution. n
management.
the tech platforms.
MISKOVIC: Risk management
MISKOVIC: Keeping up with tech-
should become part of any
nology is a costly enterprise for
company’s corporate identity
that is implemented at the senior
management level and pushed
any company.
Unfortunately, when markets
Next issue
out through all facets of the
organization. Certainly, the
were benign prior to the crisis,
tasks such as gathering portfolio
panel:
board must play a role in ensur-
ing that this implementation
data, ensuring its accuracy and
using the data to gain multiple
Custody in
occurs; however, responsibility
cannot lie solely there. Instead,
views of risk, often seemed un-
necessary.
Africa
As a result of this general
risk has to be interwoven into
23
19/10/2009 10:53
 ISJ
ISJDirectory
Directoryof
ofServices
Services ISJISJInvestor
InvestorServices
ServicesJournal
Journal

ISJ Directory of Services

Asset Servicing

T: +44 (0) 208 760 7130

Goal is widely-acknowledged in the financial services sector for its innovative and C: Stephen Everard or
creative solutions to highly-specialized niche processes. Saghar Bigwood
Goal’s research has shown that in excess of USD8 billion of withholding tax remains A: 7th Floor, 69 Park Lane,
unclaimed each year by the rightful owners and beneficiaries and that over USD12 Croydon, Surrey, CR9 1BG
billion is lost because rightful beneficiaries are not participating in class actions, E: severard@goalgroup.com or
bankruptcies and disgorgements. sbigwood@goalgroup.com or
info@goalgroup.com
W: www.goalgroup.com

Consultancy

SMA Financial is the UK’s premier provider of SWIFT services and a long standing Simon Murby
business partner of SWIFT. SMA’s vast experience in the banking and securities Managing Director
industry has provided high quality provision of SWIFT related consultancy, training, SMA Financial Limited
system care and bureau services which is second to none. SMA prides itself on their Telephone : +44 (0)20 7940 4200
in-depth and highly experienced team of consultants chosen from the banking and Bramah House,
securities industry. The introduction of the SWIFT bureau service has witnessed much 65-71 Bermondsey Street,
success by providing cost effective and quality hosted connectivity services to many London. SE1 3XF
satisfied clients. Website: www.sma.co.uk

Custody & Clearing

BHF Asset Servicing GmbH comprises the custody, depotbanking and securities services
of BHF-BANK Aktiengesellschaft. With around 250 members of staff, approx. EUR 270 Strahlenbergerstraße 45; 63067
billion in assets under administration and a depotbanking volume of EUR 85 billion, Offenbach a.M. Germany
BHF Asset Servicing GmbH is one of Germany’s leading specialists in depotbanking •Contact: Moritz Ostwald
and custody business. It develops innovative and high-class services for investment •Phone:+49 69 667744 838
companies, institutional investors and foreign banks, and excels at tailoring solutions to •Email: moritz.ostwald@
the individual needs of its clientele. bhfassetserv.com

Assets under Administration: EUR 270 bn

No of funds: 478

DnB NOR is the leading provider of Custody, Clearing and Remote Member Service in T: +47 22 94 92 95
Norway. DnB NOR offers a full range of securities settlement, Corporate Action and cash F: +47 22 48 28 46
management services for both foreign and domestic institutional clients. The bank Contact: Bente I. Hoem, Head of Global
has a strong commitment to the Custody business in Norway and the staff is highly Relations & Network
knowledgeable and experienced. In addition, DnB NOR provides a wide range of value- E: bente.hoem@dnbnor.no
added services for foreign clients such as Securities Lending, Income Collection, Proxy W:www.dnbnor.com
Voting, Tax Reclaim, and MIS reporting.
As the largest commercial bank in Norway, DnB NOR offers clients full services in
securities trading, registration, foreign exchange and Money Market.

Banking Securities Services provides award winning local and regional custody services
for investment professionals. We are proud to be the largest custodian provider in
terms of assets and number of foreign clients in Central & Eastern Europe. ING has For further information please contact
been providing Securities Services in CEE since 1994 and we will continue our ongoing Lilla Juranyi, Global Head Custody
pursuit of excellence through new technology. Innovation and client focus are the key at + 31 20 7979 435
drivers to service our clients the best way. or contact her by email:
Other activities of ING Wholesale Banking Securities Services are Paying Agency Lilla.Juranyi@mail.ing.nl
Services and web-based management of employee stock option & share plans.
ING is your local partner in: Belgium, Bulgaria, Czech Republic, Hungary, Poland,
Romania, Russia, Slovak Republic and Ukraine.

24

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 ISJ Investor
ISJ Investor Services
Services Journal
Journal ISJDirectory
ISJ DirectoryofofServices
Services

Intesa Sanpaolo’s Transaction Services include : Piazza della Scala 6

• Sub Custody, Derivatives and Remote Membership Clearing
20121 Milan, Italy
• Global Custody and Depository Bank for mutual funds, pension funds, real
T: +39 02 8794 2466
estate funds, private equity funds and hedge funds
• Fund Administration for mutual funds, pension funds, real estate funds, F: +39 02 8794 1519
private equity funds and hedge funds W: intesasanpaolo.com
• Paying Agent for foreign funds and sicavs C: Riccardo Lamanna
• Cash and Payment services like swift to checks, mass payments, checks and E: riccardo.lamanna@
cash letters intesasanpaolo.com

Nordea is the leading financial services group in the Nordic and Baltic region and operates
through three business areas: Nordic Banking, Private Banking and Institutional &
International Banking. Nordea is the leading custody services provider in the region. Nordea
provides high quality, tailor-made custody services for local and foreign investors dealing with Contact:
Nordic and Baltic securities. Due to the unique history of being formed from four established Nina Groth
banks, Nordea is the only Nordic custody provider with strong local presence and expertise in all Head of Sub-custody and Clearing
four markets. Nordea combines Nordic competence with local expertise, and has proven ability Tel: +45 3333 6124
to deliver high quality services that meet both clients’ and each local market’s requirements. E-mail: nina.groth@nordea.com
Leading Nordic custodian: Critical mass and resources available; deep local experience and
active involvement in each Nordic market; Complete operational capabilities and best-fit
systems developed in each Nordic market; Proven ability to deliver high-quality service in all
Nordic markets; Excellent connection with key players in all Nordic Markets; Extensive product
and service offering; Your single point of entry to the whole Nordic region.

Santander is Spain’s leading financial institution and the largest bank in the euro zone
by market capitalization. Our commitment and contribution to the securities industry is
T: Europe: (34) 91 2893932 / 28
well established after more than a century of providing services in this field.
T: USA: (1212) 350 39 02
Santander’s cutting edge technology enables it to offer a comprehensive array of
W: santanderglobal.com
innovative services in a broad range of markets. Santander currently has full local
E: globalsecurities@
capabilities in Iberian and Latin American markets along with a franchised presence in
gruposantander.com
many others. Santander`s experience and product range ensures that every aspect of
the securities business is fully contemplated.

Financial Asset Services is the custody and investments-servicing division of Standard

Bank, providing a unique suite of services to sophisticated investors in South Africa and A:Standard Bank
eight sub-Saharan markets. Investor Services
Securities Lending Department
Standard Bank has assets under custody to the value of ZAR1.56 trillion and an overall 25 Sauer Street
market share of approximately 40%. 2nd Floor, Entrance 3
Johannesburg 2001
Standard Bank’s unique selling point lies in its consultative approach to South Africa
relationships combined with the bank’s commitment to custody and investment T: +2711 636 6615
E: adam.bateman@standardbank.co.za
administration services.
W: www.standardbank.co.za

SEB is the leading provider of securities services in the Nordic and Baltic area. We
are committed to custody and clearing processes for the wholesale market. We hold
T: +46 8 763 53 04
securities worth over 560 bn EUR and provide services in more that 75 markets, 10 of
F: +46 8 763 69 30
them under the SEB name (Sweden, Norway, Finland, Denmark, Luxembourg, Germany,
C: Goran Fors, Global Head
Estonia, Latvia, Lithuania and Ukraine).
of Custody Services
We offer a full range of securities services including corporate action and information
E: goran.fors@seb.se
services, securities lending and services to remote members of the Nordic and Baltic
W: www.seb.se
stock exchanges. We continuously develop new products in connection with clients and
partners to ensure we deliver the high-quality products our clients demand. We always
strive to make the processes more efficient. With a history of over 150 years in the
securities industry; we know the market and our clients well.

Société Générale Securities Services offers institutional investors, asset managers and Sébastien Danloy
financial intermediaries a comprehensive range of financial securities services: custody, Global Head of Sales,
clearing & trustee services, fund administration, asset servicing and transfer agency. Investor Services
SGSS currently ranks 3rd European custodian and 9th worldwide custodian (Source: Société Générale Securities Services
Globalcustody.net) with EUR 2,580* billion in assets held and valuates 4,354* funds T: +33 (0)1 41 42 98 65
representing assets of EUR 405* billion (as of June 2007). E: sebastien.danloy@socgen.com
W: www.sg-securities-services.com

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 ISJ Directory of Services ISJISJInvestor
InvestorServices
ServicesJournal
Journal

With an extensive network that spans over 70 countries, well-positioned in the emerging trade and
investment corridors across Asia, Africa and the Middle East, Standard Chartered’s Wholesale Banking
business combines global capabilities with local expertise to develop innovative products and services C: Giles Elliott, Global Head, Securities
to meet the diverse needs of our corporate and institutional clients in some of the world’s most dynamic Services
markets. Building on a rich banking heritage, Standard Chartered is noted for a client-focused approach P: +65 6517 0134
to business, unmatched on-the-ground expertise and a solid track record of innovative, award-winning E: Giles.Elliott@sc.com
financial services solutions, reflecting our continued commitment to power our clients’ ambitions. As W: www.standardchartered.com
one of Asia’s leading custodians, Standard Chartered serves global, regional and local custodians and
broker-dealers, as well as local and regional fund managers. The Bank plays a key role in promoting the
development of these markets and keeping the international investor community informed of industry
developments across the region.

Swedbank provides client-focused custody services to domestic and international

securities lending (including auto-borrow facilities), derivative clearing services, proxy
voting, full corporate actions and income service. Flexibility is an important aspect of
Swedbanks products and services. Our dedicated Client Relations Managers and Account T: +46 8 5859 1800
Managers are focused on personalized processing and reporting solutions. F: +46 8 7237 147
Other Features: C: Neal Meacham, Head of Custody
• ISO9001:2000 quality certification. E: neal.meacham@swedbank.com
• Swedbank Markets Online (SMO) internet information and reporting tool for A: Stockholm SE 105 34 Sweden
Custody and Securities Lending.
• Nordic Custody alliance with DnB NOR (Norway), OKO Bank (Finland) and
Amagerbanken (Denmark) to offer regional custody product.
Institutional Assets under Custody: USD 70 billion

Data Services

Market Data & Analytics provides high-value real-time market data, indices and back Avox
office services. Information from diverse sources are provided to its customers, tailored Redwither Tower
to their specific information needs. Accuracy and reliability are ensured by collecting Redwither Business Park
the data from the Group’s own trading platforms, such as Xetra® and Eurex® and Wrexham, LL13 9XT
cooperation partners like STOXX Ltd. and the Irish Stock Exchange. Avox®, a majority- United Kingdom
owned subsidiary, validates, corrects, enriches and maintains business entity data. With
an operational model, unique in the industry, Avox® enables clients to comply with T: +44 (1978) 661 813
regulatory requirements and to achieve a holistic view of the risk exposure towards F: +44 (1978) 661 668
a client. W: www.avox.info

Interactive Data Corporation (NYSE: IDC) is a leading global provider of financial market www.interactivedata.com
data, analytics and related services to financial institutions, active traders and individual T: 020 7825 7800
investors. The Company’s businesses supply real-time market data, time-sensitive F: 020 7608 3514
pricing, evaluations and reference data for millions of securities traded around the Brendan Beith
world, including hard-to-value instruments. Many of the world’s best-known financial European Sales Director
service and software companies subscribe to the Company’s services in support of their eu-info@interactivedata.com
trading, analysis, portfolio management and valuation activities. Through its businesses, Fitzroy House
Interactive Data Pricing and Reference Data, Interactive Data Real-Time Services, 13-17 Epworth Street
Interactive Data Fixed Income Analytics, and eSignal, the Company has approximately London EC2A 4DL UK
2,300 employees in offices located throughout North America, Europe, Asia and
Australia.

SmartCo is a leading provider of data management solutions for the financial industry. For further information: www.smartco.fr
SmartCo’s software, Smart Financial Data Hub, covers all the data area, including or info@smartco.fr
financial instruments, market data, third parties, funds, transactions, and provides full
connectivity, a powerful and user friendly front-end, traceability, quality control, data SmartCo
enrichment and customisable workflow. 37 rue de Liège
Our solutions are based on SmartPlanet, an innovative technology focused on data 75008 Paris
management, and able to meet evolving business requirements. France
SmartCo offers to its customers the ability to respond in the fastest way to regulatory and T: + 33 1 58 22 29 60
business changes. E: info@smartco.fr
W: www.smartco.fr

Fund Administration

With more than 35 years’ industry experience, Capita Financial Group provides fund
managers with fast and cost effective third-party administration services, enabling Leah Cox
you to free up your day to focus on growing your funds and business. Our main focus is +44 (0) 207 954 9559
to provide a ‘Best in Class’ administration service, we work in partnership with you to leah.cox@capitafinancial.com
innovate, increase efficiency and provide the high level of customer service that you and www.capitafinancial.com.
your clients expect. With our UK and offshore centres (Jersey, Guernsey, Ireland and
Gibraltar), we offer a bespoke service to our clients and each area’s unique regulatory
environment.

26

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 ISJ Investor
ISJ Investor Services
Services Journal
Journal ISJDirectory
ISJ DirectoryofofServices
Services

For more information visit our website:

Established in 2002, IMFC Fund Services B.V. is a boutique hedge fund administrator www.imfcfundservices.com
and a trustee with its offices in Amsterdam and Sydney. IMFC offers third parties
administration and related services to all type of onshore and offshore funds combining www.imfcfundservices.com
high quality, independency, technology, timely calculation with flexibility, experience, t +31.20.644.4558
f +31.20.644.2735
custom-made solutions and competitive rates. Our services include: fund set-up and
Mrs. Consuelo Nardon
corporate services, NAV calculation and other accounting services, R&T agent and other
e: consuelo.nardon@imfc.nl
investors and compliance services.
Rivierstaete Building, Amsteldijk 166,
1079 LH Amsterdam, Netherlands

Intesa Sanpaolo’s Transaction Services include : Piazza della Scala 6

• Sub Custody, Derivatives and Remote Membership Clearing 20121 Milan, Italy
• Global Custody and Depository Bank for mutual funds, pension funds, real T: +39 02 8794 2466
estate funds, private equity funds and hedge funds
F: +39 02 8794 1519
• Fund Administration for mutual funds, pension funds, real estate funds,
W: intesasanpaolo.com
private equity funds and hedge funds
• Paying Agent for foreign funds and sicavs C: Riccardo Lamanna
• Cash and Payment services like swift to checks, mass payments, checks and E: riccardo.lamanna@
cash letters intesasanpaolo.com

Société Générale Securities Services offers institutional investors, asset

managers and financial intermediaries a comprehensive range of financial securities Sébastien Danloy
services: Clearing, Liquidity Management, Custody and Trustee, Fund Administration, Global Head of Sales
Asset Servicing, Fund Distribution Services and Issuer Services. SGSS currently ranks 3rd Société Générale Securities Services
European custodian and 7th worldwide T: +33 (0)1 41 42 98 65
custodian (Source: Globalcustody.net) with EUR 2,731* billion in assets held and valuates E: sebastien.danloy@socgen.com
5,158* funds representing assets of EUR 499* billion (at end March 2008). W: www.sg-securities-services.com

Swiss Financial Services

Drawing upon an extensive track record of proficiency, dependability and (Ireland) Ltd.
responsiveness, Swiss Financial Services acts as administrator as well as registrar and Block 4B,Cleaboy Business Park,
transfer agent of funds investing in a broad range of financial instruments. These Old Kilmeaden Road,
include futures, foreign exchange, equities, options, bonds and other funds. Waterford, Ireland
T: +353 51 351180
We perform accounting and administration services for diverse fund types domiciled F: +353 51 871595
in, but not limited to, the United States, Bahamas, Cayman Islands, B.V.I. and Ireland.
Adrian Maher
E: amaher@swiss-financial.ie

Luxembourg: Jean-Paul Gennari,

Fund Services is a dedicated fund administrator providing customized and flexible services for tel. +352-44-1010 1
traditional and alternative investments. Switzerland: Markus Steiner,
Our comprehensive range of services for investment funds includes fund set-up, registration and tel. +41-61-288 4910
support around the world, fund accounting, NAV calculation, risk control and reporting. We have W: www.ubs.com/fundservices
practical experience with registering funds in 28 jurisdictions. C: Andre Valente
We provide a flexible offering from the full range of services, including Private Labelling, to selected T: + 41 61 288 6269
functions. Through our leading fund administration architecture, multi-source pricing and powerful E: andre.valente@ubs.com
compliance tools, we offer a tailored, cost effective service. www.ubs.com/fundservices A:UBS Global Asset Management -
Fund Services, Brunngässlein 12,
PO Box CH-4002 Basel, Switzerland

Hedge Fund Administration

Apex Fund Services Ltd is a global hedge fund administration solution for hedge funds
and private equity clients located in 12 separate jurisdictions across the globe. The C: Peter Hughes
company uses the software solution, PFS PAXUS, which is a fully integrated hedge fund Group Managing Director
accounting system combined with web-based reporting to allow clients and investors T: +1 441-292-2739
to access their information 24/7 securely online. We will tailor all solutions to meet F:+1 441-292-1884
your needs and our continuing focus on the quality of service and the relationship with E: peter@apex.bm
each and individual client ensures that we retain our ethos of providing a personalized John Bohan
service rather than a generic solution. Group Manager of Operations
Highly qualified and experienced staff, mirrored with top tier technology and T: +353 21 4633366
competitive fee structures make Apex Fund Services Ltd the clear choice for your fund F: +353 21 4633377
administration needs. E: John@apexfunds.ie

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Custom House Administration &

Custom House, which is one of the world’s largest independent alternative investment and
Corporate Services Limited
hedge fund administrators, was awarded a SAS 70 Type I in May 2007 and a SAS 70 Type II in
A: 25 Eden Quay, Dublin 1, Ireland
December 2007.
T: +(353) 1 878 0807
Custom House offers a round-the-world, round-the-clock service from its office in Dublin and F: +(353) 1 878 0827
representative offices in Chicago and Singapore, enabling it to provide, not only complete C: dermot.butler@
global administration services, but also the ability to produce daily dealing NAVs. customhousegroup.com
Custom House is authorised by the Irish Financial Regulator under Section 10 of the C: david.blair@
Investment Intermediaries Act, 1995, which authorisation does not extend to the Chicago customhousegroup.com
and Singapore representative offices. www.customhousegroup.com

Fund Services holds a leading position in the area of hedge fund administration Cayman Islands: Darren Stainrod,
with specialized teams around the world. We offer a complete range of services tel. +1-345-914 1076
Eire: Don McClean, T: +353-1-436 3636
including accounting, NAV calculation, shareholder services, banking and credit
US: Concetta Mastrangelo,
facilities. tel. +1-212-882 5523
With specialist expertise in both single manager and fund of hedge fund W: www.ubs.com/fundservices
administration, services can be provided for both onshore and offshore funds. C: Darren Stainrod, T: ++1-345-914 1076
Through our comprehensive range of services and products, leading edge E: Darren.stainrod@ubs.com
technology platforms and superior client service, we work in partnership to offer A: UBS Fund Services (Cayman) Ltd, PO
the solutions you need. Box 852 GT, Grand Cayman, Cayman Is

International Finance Centres

The British Virgin Islands has created a progressive and transparent environment for the
establishment and regulation of mutual/hedge funds and their functionaries. By the end British Virgin Islands
of Q3 2006 the BVI had recognised or registered more than 4,000 funds, and licensed International Finance Centre
some 700 managers and administrators, making the BVI a leading domicile of choice for Haycraft Building
investment business. Benefits of conducting investment business in the BVI include: 1 Pasea Estate
• Fast-track registration and licensing system - funds can be registered in a few days. Road Town
• Presence of qualified, experienced legal, accounting & administration practitioners. Tortola
• A well-developed corporate professional infrastructure. British Virgin Islands
• Modern, robust and cost-effective regulatory and corporate regimes. T: +1 284 494 1509
• BVI private and professional funds fall outside the scope of EU Savings taxation Directive. F: +1 284 494 1260
• Segregated Portfolio Companies - also known as Protected Cell Companies - can now be W: www.bviifc.gov.vg
formed as mutual funds under the BVI Business Companies Act 2004.

Payments & Settlements

VocaLink is the payment transaction specialist. Trusted by the world’s top banks VocaLink
our automated payment system processes over 90 million transactions per day. The Drake House
VocaLink switching platform powers the world’s busiest ATM network and provides Homestead Road
end-to-end management of Europe’s largest ATM estate, while the Real-Time Rickmansworth
Payments platform provides the central infrastructure for the UK Faster Payments Hertfordshire
service. The VocaLink EuroCSM delivers reach for our clients throughout the SEPA WD3 1FX
and beyond with a range of value-added services that leverage our know-how and
technical capabilities. VocaLink is the partner of choice internationally, working T: +44(0)870 1650019
with BGC to process Sweden’s automated payments. F: info@vocalink.com
Find out how we can help your business at www.vocalink.com W: www.vocalink.com

Prime Brokerage
Newedge Global Prime Brokerage Group is a global, multi-disciplinary, solution-
providing team dedicated to delivering superior services to alternative investment Philippe Teilhard de Chardin,
industry participants including hedge funds, commodity trading advisors (CTAs), Global Head of Prime Brokerage
fund of hedge funds, family offices, and institutional investors (insurance companies, T +44 20 7676 8536
banks and pension funds). The Newedge prime brokerage team offers a global range Vincent Tournant, Head of Business
of brokerage services covering a wide range of asset classes including equities, Development T +44 20 7676 8171
bonds, currencies, commodities, and their related listed and OTC derivative products. Duncan Crawford, Head of Capital
We also offer an innovative portfolio-based cross-margining solution, a dedicated Introductions T +44 20 7676 8504
account management desk, hedge fund start up services, quantitative information on E: pbinfo@newedgegroup.com
the hedge fund industry, capital introductions services, and recently prime brokerage www.newedgegroup.com/primebrokerage
services to Sharia compliant hedge funds. Newedge is wholly owned by Calyon and
Société Générale, with both companies having 50% ownership.

Securities Lending

Data Explorers (www.dataexplorers.com), based in New York and London, is the UK: 2 Seething Lane, London, EC3N 4AT
world’s most complete resource for data, analysis and insight into securities T +44 (0) 20 7264 7600,
lending and short selling. The company’s proprietary data gives an unrivalled, F +44 (0)20 7392 4004
comprehensive view on share lending and short-selling activity. With data sourced US: 75 Rockefeller Plaza, 19th Floor
directly from securities lending desks of over 100 of the top lending firms and New York, 10019, USA
representing most of the global securities lending market, Data Explorers has built T +1 212 710 2210 F + 1 212 710 2212
a reputation with leading financial institutions as the source for short intelligence Julian Pittam T +44 (0) 207 264 7616
that informs their decision-making and their coverage of market sectors and E:julian.pittam@dataexplorers.com
companies. Please visit our Blog: dataexplorers.com/news, Twitter, twitter.com/ New York: Ken Read T +212 710 2210
dataexplorers, Video dataexplorers.com/daily-briefing and LinkedIn linkedin. E: kenneth.read@dataexplorers.com
com/companies/data-explorers sites. www.dataexplorers.com

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Services Journal
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ISJ DirectoryofofServices
Services
www.equilend.com
EquiLend is a leading provider of trading services for the securities finance EquiLend Europe Ltd.
industry. EquiLend facilitates straight-through processing by using a common 14 Devonshire Square
standards-based protocol and infrastructure, which automates formerly manual London, EC2M 4TE
trading processes. Used by borrowers and lenders throughout the world, the +44 (0) 207 426 4426
EquiLend platform allows for greater efficiency and enables firms to scale their T: UK- +44 (0)20 7743 9510
C: Michelle Lindenberger
business globally. Using EquiLend’s complete end-to-end services, including pre- E: michelle.lindenberger@equilend.com
and post-trade, reduces the risk of potential errors. The platform eliminates the A: 17 State Street, 9th Floor
need to maintain costly point-to-point connections while allowing firms to drive New York, NY, 10004
down unit costs, allowing firms to expand business, move into different markets, T: US- +1 212 901 2224
increase trading volumes, all without additional spend. This makes the EquiLend C: Michelle Lindenberger
E: michelle.lindenberger@equilend.com
platform a cost-efficient choice for all institutions, regardless of size. W: www.equilend.com

eSecLending is a full service securities lending agent and administrator of

customized securities lending programs. Their program has been adopted by many of
the world’s largest and most sophisticated asset gatherers including pension funds, T: US- +1 617 204 4500
mutual funds, investment managers and insurance companies. They are a third party T: UK- +44 (0)20 7469 6000
industry specialist providing lenders with customized programs, high touch client C: Christopher Jaynes
service, comprehensive risk management, and superior risk adjusted returns. The E: info@eseclending.com
firm takes a highly consultative approach with their clients by structuring separate, W: www.eseclending.com
non-pooled programs and utilizing a competitive auction to determine the optimal A: 175 Federal Street, 11th FL, Boston, MA
route to market for their clients’ lendable assets. Having built their business to 02110, US
incorporate investment practices such as the use of specialists, multiple-managers,
A: 1st Floor, 10 King William Street,
unbundling, price transparency, and competition, their approach ensures best
London EC4N 7TW, UK
execution and also provides clients with greater control over their programs, allowing
them to more effectively monitor and mitigate risks and counterparty relationships.

Eurex is one of the largest derivatives exchanges and the leading clearing house
in Europe. Wherever you are located, we provide you with access to the benchmark
futures and options market for European derivatives. Eurex also offers short term
funding products, such as Eurex Repo. Eurex Repo is among the forerunners in
providing integrated trading and clearing for repo transactions. Eurex’s latest W: www.eurexseclend.com
innovative marketplace is called Eurex SecLend. T: +41 58 854 2066
Eurex SecLend. Europe’s leading investment banks participate as borrowers F: +41 58 854 2455
in the Eurex SecLend marketplace, acting as principal brokers, dealers and E: info@eurexseclend.com
intermediaries. They all benefit from Eurex’s leading state-of-the-art trading and Eurex Zurich Ltd., Selnaustrasse
processing services. For Eurex, service and technology innovation is not just a 30, 8021 Zurich, Switzerland
buzzword. New trends are being transformed into inventions through the adoption
of advanced trading practices. Find out more on www.eurexseclend.com.

FINACE® is the only fully integrated solution today which supports the future T: +41 (0)44 298 92 00
business model within the area of Securities Finance and Collateral Management. F: +41 (0)44 298 93 00
The architecture of FINACE® is based on a stable, leading edge technology A: COMIT AG, Pflanzschulstrasse 7,
platform, which was developed with performance and robustness as the focus of CH-8004 Zürich, Switzerland
design. With flexibility at its core, customer-driven extensions and modifications W: www.finacesolution.com
can be quickly and easily applied to the standard component set. www.comit.ch

JPMorgan’s Securities Lending program is unparalleled due in no small part to New York: William Smith
the Firm’s breadth of capability, financial strength, professional expertise and T: 212-623-5664
seamless operations. Our program enables investors to access a broad spectrum of E: william.z.smith@jpmorgan.com
lending markets, with a diverse borrower base, offering a broad indemnification London: Michael Fox
against borrower default, while achieving very competitive bids for their T: 44 207 742 0256
securities - all of this in an environment designed not to compromise the activities E: michael.uk.fox@jpmorgan.com
of their fund managers. As one of the founding members of EquiLend, a global Sydney: David Brown
T: (61-2)92504606
automated platform for borrowers and lenders, JPMorgan is at the forefront
E: david.ldn.brown@jpmorgan.com
of technology and is ideally placed given its integrated lending, custody and
W: www.jpmorgan.com/wss
accounting platforms.

Santander is the only Spanish financial institution with a team exclusively

dedicated to securities finance & with the purchase of Abbey in 2004 has W: www.gruposantander.com
expanded its capacity on a Global basis with trading teams in London (UK) & T: (3491) 289 39 42/54
Connecticut (USA). E: securitieslending@
Santander’s leading local capabilities in Spain, Portugal, UK, USA & Latin gruposantander.com
America, along with its solid balance sheet & combined with the state-of-the-art
technology, provides its clients with the broadest range of solutions in securities
lending & financing, including availability across all assets classes, as well as
access to uncommon emerging markets.

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Around the world, securities financing is managed on SunGard’s Email: securities.finance@

proven solutions for international and U.S. domestic securities lending and sungard.com
repo for over 250 clients. Through our Loanet, Global One, Martini and Astec Contact:
Analytics products and services, we provide comprehensive business solutions EMEA: +44 (0) 20 8081 2779
and information with worldwide reach for equities or fixed income securities America’s: +1 (646) 445-1179
financing. These solutions – all in an integrated, exception-based processing Asia Pacific: + 62276400
architecture – includes order routing, pre-trade analytics, trading, position Visit: www.sungard.com/
management, operations, accounting, settlement and reconciliation. securitiesfinance

Technology
BI-SAM is a leading provider of analytics software, client reporting and data
management solutions to the investment management community.
Our integrated and innovative solutions have already been adopted by many A: BI-SAM Ltd
renowned asset managers in France, Belgium, Luxembourg, UK, Hong Kong and 1 Cornhill
London EC3V 3ND
Singapore who have assets under management ranging from 10 to 450 billion Euros.
T: +44 (0)20 3008 5834
The B-One suite of products covers: performance measurement, performance
F: + 44 (0)20 3008 5831
attribution (equities, balanced and fixed income), risk attribution (ex-post and ex-
E: marketing@bi-sam.com
ante), as well as multi-lingual client reporting and factsheets. This suite of products W: www.bi-sam.com
can be used either as stand-alone applications or ASP hosted solutions.
The Company has approximately 45 employees in offices located in Europe (Paris,
London, Luxembourg). Offices in Asia and North America are under consideration.
The Company is headquartered in Paris.

DST International is the world’s premier vendor of technology solutions to the global investment T: UK +44 (0)20 8390 5000
management community with over 700 clients in 55 countries, and 1500 employees in 19 of the Boston +1 617 482 8800
world’s leading financial centres. Our wide range of asset management solutions meet the needs of Hong Kong +85 225 812 880
fund managers, dealers, settlement staff, custodians and record keepers operating as international F: +44 (0)20 8390 7000
asset managers; from front office simulation, opinion management and modelling functions, E: info@dstintl.com
through data management, dealing and settlement to custody and corporate actions. The suite of A: DST House, St Mark’s Hill, Surbiton,
products can be used either as stand-alone applications or brought together in flexible combinations Surrey, KT6 4QD
according to specific needs. W: www.dstinternational.com

Eagle Investment Systems LLC is a global provider of financial services technology,

serving the world’s leading financial institutions. Eagle’s Web-based systems support W: www.eagleinvsys.com
the complex requirements of firms of any size including institutional investment T: +44 (0) 20 7163 5700
managers, mutual funds, hedge funds, brokers, public funds, plan sponsors, and F: +44 (0) 20 7163 5701
insurance companies. Eagle is committed to providing enterprise-wide, leading-edge A: The Bank of New York Mellon
technology and professional services for investment accounting, data management, and Financial Centre
performance measurement. Eagle’s product suite is offered as an installed application or 160 Queen Victoria Street
can be hosted via Eagle ACCESS, Eagle’s application service provider. Eagle Investment London EC4V 4LA
Systems LLC is a division of The Bank of New York Mellon Corporation. To learn more
about Eagle’s solutions, contact sales@eagleinvsys.com or visit www.eagleinvsys.com.

Financial Tradeware provides integrated solutions for medium to small sized Investment
Management firms, Fund Managers and Hedge Funds, covering the full trade life cycle. W: www.f-tradeware.com
It is part of the Dharma Group of companies and benefits from the joint contributions T: +44 (0)20 7493 2773
and experiences within the group of market traders, business analysts, financial services F: +44 (0)20 7495 4858
professionals and skilled Microsoft Certified programmers. The company has developed a C: Graham Bright
suite of applications that integrate and Straight Through Process (STP) real-time trading, E: info@f-tradeware.com
back office administration, accounting and compliance. Ultra.net®, S-Messenger® and A: 31 Dover Street
H-Fund® arwe the company’s flagship products all based on Microsoft.NET infrastructure. London W1S 4ND UK
The company also offers a Member Concentrator for hosted SWIFT connectivity and Member
Administered Closed User Group (MA-CUG) services for Corporates and Hedge funds.

Isis Financial Systems provides mission critical investment management software and
services to many large and small companies. Our customers perform a broad range of
functions including fund accounting, derivative and hedge funds, wealth management, Contact:
and pension and endowments, etc…. Our integrated solution services the front, middle, Isis Financial Systems
and back offices of these companies with software that accommodates most any security 14 Felton Street
type. Built on a contemporary three tiered architecture our application helps financial Waltham, MA 02453
companies improve operating efficiencies, increase accuracy and reliability and improve Sales@IsisFS.com
customer service. (00-1) 781-209-0262
IsisFS has the experience and IMS has the tools to improve your operations and save you
money.

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ISJ Investor Services
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ISJ DirectoryofofServices
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A:IGEFI Group Sàrl - 7, Rue des

IGEFI is the foremost provider of software solutions for international fund promoters, Primeurs,
third-party service providers and fund managers. Its prestigious client-base is testimony L-2361 Strassen
to our commitment, service and quality with more than 200 expert staff supporting T: +352 26 44 211
clients from seven offices worldwide including Bangalore, Boston, Frankfurt, Geneva, F: +352 26 44 21 44
London, Luxembourg and Paris. MultiFonds is operational in more than 20 countries E: marketing@igefi.com
worldwide and support investment funds assets in excess of US$ 2 trillion. MultiFonds W: www.igefi.com
Fund Accounting and MultiFonds Transfer Agency are developed on a “one system-one C: Mr. Jesper Steiness - Head of
database” philosophy and provide significant advantages including reduced overhead Business Development
and IT support costs and single look and feel reporting for global clients. Europe & Asia
E: jesper.steiness@igefi.com

For more information on Information

Mosaic, please visit our website at
Information Mosaic is a global provider of advanced custody, corporate actions and wealth www.informationmosaic.com
management solutions to the global securities industry. Information Mosaic’s business Global:
professionals leverage decades of financial industry expertise and technical knowledge emullan@informationmosaic.com,
to deliver complex projects on time and within budget. Since inception, the company US:
has utilized the most modern technology to develop solutions to run on a scalable, emadigan@informationmosaic.com
single platform. Today, Information Mosaic supports clients from offices in Boston, Europe:
Dublin, London, Luxembourg, New York and Singapore. Currently, six of the top 10 global aleyder@informationmosaic.com
custodians deploy Information Mosaic solutions worldwide. Asia:
djennings@informationmosaic.com
General Enquires:
jflett@informationmosaic.com

For more than a decade, administrators, managers, and advisors have relied
on KOGER for dependable software tools backed by extensive industry T: 001-201-291-7747
experience and expertise. Now, for those who want to reduce costs and streamline F: 001-201-291-7808
business processes, Koger offers Fully Integrated Fund C: Mr Ras Sipko
Administrator, a vertically integrated suite serving the back-office software needs of the E: ras@kogerusa.com
fund industry. KOGER USA
Fully Integrated Fund Administrator consists of three core programs: 12 Route 17 North
~ NTAS, the New Transfer-agency System Suite 111
~ E*TAS, Electronic Transfer Agency System Paramus
~ GRID, Global Reach Interface Daemon New Jersey, NJ 07652, USA
Other programs, such as PTAS, KIT, and KORS available separately, complement the core W: www.kogerusa.com
competency of Fully Integrated Fund Administrator.

Misys provides integrated, comprehensive solutions that deliver significant results to

over 1,200 financial institutions globally. Our buyside solutions help asset servicers,
asset managers and hedge funds handle the latest complex products, streamline
processes, reduce costs and improve STP. Misys Summit is our award winning, www.misys.com
multi-asset class solution that boasts 18 years OTC derivatives market expertise. tcm.marketing@misys.com
With extensive OTC buyside coverage and the market leading structured products
module, Misys Summit delivers the solution you need for handling the end to end
process for OTC. We also provide a customisable ASP service for fast implementation
and lower costs.

Building on over twenty years of experience in capital markets and cross-asset software
solutions, Murex introduces Mx Asset Manager - a unique cross currency, cross asset fund C: Hélène Desbiez
management solution capable of handling the full range of products, from plain vanilla to Business Development Manager
the most complex derivative products. T: +33 1 44 05 32 00
Coupled with a high degree of flexibility and customization, Mx Asset Manager E: helene.desbiez@murex.com
features a multifaceted design catering to the needs of both service providers W: www.murex.com
(prime brokers, administrators, asset servicing providers) and direct clients (portfolio
managers for mutual, pension or hedge funds, insurance companies).
With so many new challenges presented to buy-side managers when integrating
increasingly-complex derivatives into their portfolios and funds, Mx Asset Manager
represents a strong and reliable ally for dynamic position keeping and multi-dimensional
risk management in a thriving market.

Odyssey Financial Technologies is an industry leader in the global provision of wealth

and asset management solutions and services to the Private Banking, Mass Affluent and London Office:
Retail Banks as well as Institutional and Fund Managers. Over 200 financial institutions Martin House
in more than 30 countries have chosen Odyssey solutions. Odyssey focuses on providing 5 Martin Lane
a comprehensive range of components for portfolio management (PMS), advisory London EC4R 0DP U.K.
process, customer relationship (CRM), compliance, risk, analytics and Enterprise Data
Management (EDM). The components are deployed on a single scalable wealth and asset T: +44 (0)20 7621 5800
management platform, facilitating the enterprise-wide implementation of solutions F: +44 (0)20 7621 5899
and data management. Founded in Luxembourg in 1995, Odyssey today has offices in
the key financial centers, including London, New York, Singapore, Zurich, Frankfurt, E: info@odyssey-group.com
Brussels, Geneva, Madrid, Toronto and Tokyo. Odyssey’s operational head office and main W: www.odyssey-group.com
development centre is located in Lausanne, Switzerland. Throughout this knowledgeable
network Odyssey employs over 600 professionals.

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peterevans is a leading provider of front to back office solutions for the financial services
sector. With 23 years experience peterevans takes a sophisticated and dynamic approach
peterevans
to assist customers in reducing costs and witnessing an increase in margins by seamlessly New Broad Street House
replacing costly and restricting legacy platforms. peterevans works in a collaborative 35 New Broad Street
manner and sees clients as partners to help meet all the demands in today’s marketplace. London EC2M 1NH
The xanite product suite offers a highly configurable, flexible and fully integrated, browser T: +44 (0) 29 20 402200
based, comprehensive front to back solution that complies with message standardization E: info@peterevans.com
and settlement harmonization. Deployed as a single application or integrated as W: www.peterevans.com
components into your existing platform. Each of the xanite modules can be delivered via an
ASP or self-hosted. Covering: wealth management, custody corporate actions clearing and
settlement private client and on-line stock broking.

Pirum provides a full suite of automated reconciliation and straight through processing
(STP) services supporting Operations within the global securities finance industry. The T: +44 20 7220 0961
company’s on-line SBLREX service encompasses daily contract F: +44 20 7220 0977
compare, monthly billing comparison, mark-to-market & exposure processing, pending C: Rupert Perry
trade comparison, income claims processing and E: rupert.perry@pirum.com
custody reconciliation. A: Pirum Systems Limited
Subscribers to Pirum’s services significantly increase their operational efficiency and 37-39 Lime Street
reduce their risk by using Pirum’s solutions, as staff are able to focus on fixing the London, EC3M 7AY
exceptions instead of using their time to check and process routine business. These W: www.pirum.com
automated processes are more scalable and risk controlled too, allowing
significantly higher volumes to be managed without corresponding increases in
operations headcount.

Princeton Financial Systems (PFS), a 100% subsidiary of State Street Corporation, is a leading
provider of portfolio management and accounting systems, investment compliance, data For more information, visit Princeton
management, and reporting solutions to the global investment industry. Our solutions are
used worldwide by over 430 leading investment managers, custodians, insurance companies, Financial’s website at www.pfs.com or
pension funds, hedge funds, and banks, which manage combined total assets of over $5 www.pfs.aquin.com.
trillion in more than 40 countries.These include ABP, AEGON, AIG, Allianz Global Investors, T: +1 609-987-2400
BNP Paribas, CaIPERS, CACEIS Investor Services, Citi, Commerzbank, Credit Suisse, HSBC F: +1 609-987-9320
Insurance, Metropolitan Life Insurance, Nationwide, Northwestern Mutual, Prudential, RBS, C: Lorne Whitmore, Vice President,
Société Générale Securities Services, and State Street. MIG21, PFS’s award-winning investment Global Sales & Product Management
compliance and risk monitoring solution, optimizes pre-trade and post-trade compliance E: lwhitmore@pfs.com
checking, the administration of regulatory, prospectus, and internal investment guidelines A: 600 College Road East,
along with the consequent resolution workflows. PFS, headquartered in Princeton (NJ), has Princeton, NJ 08540, USA
offices located throughout the United States, Canada, Australia, Singapore, and China as well W: www.pfs.com, www.pfs.aquin.com
as in United Kingdom, the Netherlands, Luxembourg, France, Germany, and Switzerland.

Netik’s team have spent the past 25 years perfecting the art of bringing For more information please
together market, reference, portfolio accounting, performance and risk data visit: www.netik.com
from disparate sources into a single version of the truth (SVOTTTM). The result or email: marketing@netik.com
is a highly scalable and sophisticated business data model that has been
designed to process all securities and offers a complete model for traditional
and alternative markets.

SimCorp Dimension is a powerful, comprehensive and truly seamless investment

management system. It can handle NAV and other calculations, with complete related
accounting, for a huge variety of fund structures and product types, including regional
T: +44 (0)20 7260 1900
specialities.
F: +44 (0)20 7260 1911
SimCorp Dimension has been designed from scratch as an enterprise-wide system, C: Elizabeth Gee, sales director
handling all aspects of the investment management process and related administration of SimCorp Dimension
functions, consistently. Data is recorded once into a core database so that reporting is E: elizabeth.gee@simcorp.com
made easy, there is no reconciliation of data and no duplication of procedures. W: www.simcorpdimension.com
-By cutting latency in securities processing, our clients are recognising new efficiencies, A: SimCorp, 100 Wood Street,
reducing costs and increasing throughput London EC2V 7AN
-By streamlining their customer on-boarding processes, our clients are gaining faster
access to fees, increasing customer satisfaction, gaining greater cross-sell opportunities.

SunGard is one of the world’s leading software and IT services companies. SunGard serves SunGard Global Trading
25 Canada Square, London E14 5LQ
more than 25,000 customers in more than 70 countries, including the world’s 25 largest
financial services companies.
Tel +44 (0)20 8081 2000
Dedicated to post trade securities operations, GL RIMS is your comprehensive real time Fax +44 (0)20 8081 3399
securities post execution processing solution, covering middle office, settlement and
accounting requirements. Its wide use of automation enables global capital markets www.sungard.com/globaltrading
organisation to achieve maximum STP. It is a flexible, highly scalable and easy to install
platform with a new Service Oriented Architecture feature that allows smooth and Email: info.globaltrading@sungard.com
efficient connections with other third parties within a company.

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