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ISJ46.indd 2 40 09/03/2010 20:15
09/03/2010 18:26
ISJ Investor Services Journal Heads up
P.08 Profile P.06 People Moves P.12 African Custody P.16 Russian infrastucture P.20 European Repo
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.02 News
editor-in-chiefs letter
INVESTOR New challenge
SERVICES Governments and central an unprecedented degree of
JOURNAL banks came to the rescue and in cooperation, discussion and
editor-in-chief:
the end, just did what needed consultation amongst regulators,
roy Zimmerhansl to be done to keep the worlds the public and trade associations
roy.zimmerhansl@2i.tv banks and markets afloat. including the acknowledgement
senior correspondent: Whereas previous regulatory of the links between cash and
craig mcGlashan guidelines focused on capital, it derivatives markets. This reality
craig.mcglashan@2i.tv
was really liquidity that mattered was embodied when William
reporter:
Kimberley Ferguson
Globalisation of the during this crisis and inevitably Brodsky became the first leader
kimberley.ferguson@2i.tv markets is most certainly not all eyes have now switched to of a derivatives exchange to
a new theme. Indeed, I moved this central topic. At the heart become chairman of the World
contributors:
anthony harrington to the UK in 1987 just as the of market liquidity is the world Federation of Exchanges.
first tidal wave of cross-border of repo. There are many changes Today when new markets
account managers:
investment was cresting and afoot across the globe and the emerge, they do so with high
cicely lewis
cicely.lewis@2i.tv placing new demands on article from the chairman of the standards and sometimes even
investors, global custodians European Repo Council sets out higher expectations. We look at
eradat munshi
eradat.munshi@2i.tv and local agents. I heard the some of the prescient moves of several African countries and see
sound of the crashing wave the repo industry ahead of the depositories, dematerialisation
head of sales:
patricia De la Grange in October 1987 after a scant crisis and lays out a number of and significant investment in
trish.delagrange@2i.tv few months helping build a the challenges that lay ahead. infrastructure across an area
new global custody product. I Investors are well advised to that is often neglected. Not
Digital media producer:
peter ainsworth remember visiting clients and watch the action in the repo without issues perhaps, but more
peter.ainsworth@2i.tv prospects whose idea of real markets as we move into an developed than many would
operations manager: time positions was having a environment where central give it credit for. As investors
nicolette whittaker manual ledger. banks need to remove the return to the hunt for much
nicolette.whittaker@2i.tv
Just over twenty years on from excess liquidity they have been needed performance, it seems
what had at the time been the pumping into the markets over certain that they will turn to
managing director:
worst crash since 1929 - we are the recent, painful past. African investments to help
Jon hewson
jon.hewson@2i.tv once again emerging from... the If there is a silver lining meet those goals. It seems they
worst crash since 1929. that has come out of all this can do so with confidence in the
chairman:
mark latham Hopefully many lessons turmoil, it is the recognition infrastructure in many of the
mark.latham@2i.tv have been learned, but one of of the interconnectedness of markets.
2i uK 16-17 Little Portland Street, the most interesting results the markets and the need for a A more integrated,
London W1W 8BP, UK is the recognition of just how consistent and where possible, sophisticated, interdependent
T: +44 (0) 20 7299 7700
interconnected the world is harmonised framework of world, partly by choice, partly
F: +44 (0) 20 7636 6044
and how the pace of change regulations for investors across by necessity. And of course, real
2i us 410 Park Avenue, 15th Floor accelerates. the globe. There has been time. Just check my ledger.
New York, NY 10022
T: +1 212 231 8421
F: +1 212 231 8121 Latest mandates
A
Contents 2
News
In this issue
COVER
COVERSTORY
STORY- African Custody 10
Round up
Middle Eastern markets where
custody the firm provides securities
02 News The last month 20 European Repo- services to five. Giles Elliott,
of updates in custody, Godfried DeVittes talks Carlsberg AS has announced global product head of securities
clearing, securities about the development of the appointment of BNY services, cited ongoing demand
lending, legal, regulation, Mellon as depository for its for regional and international
the repo market, and what
prime brokerage and sponsored American depositary investment services in the
the future holds.
technology. receipt (ADR) program. Middle East as the reason for the
Carlsberg is one of the worlds firms decision to expand.
22 World Cup Custody -
06 People Moves South African custody - largest brewery groups with a
- Leavers and Arrivists comprehensive brand portfolio Socit Gnrale Securities
Kimberley Ferguson looks Services (SGSS) has extended
listed and looked at. at the different players in that includes four out of the 10
largest European beer brands. its relationship with European
the market insurance giant the Generali
08 Leading Edge Carlsberg is a constituent stock
of MSCI Pan-Euro, FTSE Euro Group, winning a mandate to
- Executive Profile 24 Counter Top- Tony provide custody to its subsidiary
William J Brodsky of First, and Dow Jones Nordic 30.
Harrington speaks about Five Carlsberg ADRs represent Generali Belgium. SGSS already
WFE talks future with the role the OTC derivative provides custody and depositary
Kimberley Ferguson one Carlsberg ordinary share.
market played in the services to a number of Generali
financial crisis and what SIX SIS, the international Group businesses in France.
10 Into Africa - the future holds going custodian, has announced
African custody forward. HSBC Securities Services (HSS)
plans to move into the Brazilian
By Craig McGlashan market from March 2010. has picked up two mandates,
F
25 Directory of services Offering its settlement and signing a deal to continue
13 Regional focus - Central ISJ listing of key asset custody services, from this date as global custodian for West
and Eastern Europe servicing praticioners and clients will be able to settle and Yorkshire Pension Fund in the
SEB and NDC talk about vendors. hold Brazilian securities in the UK and becoming administrator
eastern promise Brazilian market via SIX SIS and transfer agent for US asset
manager Castle Creek Arbitrage.
o
local custodian Citibank in Sao
18 Analyse this Paulo. This is in addition to SIX The West Yorkshire deal will
Netik, DST and Eagle SISs presence in 55 markets involve HSS looking after around
Investments talk worldwide. GBP2.35 billion of assets under
technology management and the renewal
Standard Chartered has launched will come into effect from the
custody and clearing services for start of April.
to renew your subscrIptIon please telephone clients investing in Bahrain and
Oman, bringing the number of Citigroup has been signed by
M
+44 (0)20 7299 7700 or vIsIt... www.IsJ.tv/membershIp
w
2
33
1-15 ISJ46 final.indd 2 09/03/2010 23:36 ALFI Sp
ALFI Spring Conference 3rd Day
Special Topic!
23 & 24 March 2010 ALFI Microfinance
Conference
25 March 2010
Focus
on the investor
Market Trends l Infrastructure l Products l Regulatory Update
www.alfi.lu
1-15
ALFI ISJ46 final.indd 3
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03/03/2010 23:36
10:10:15
News Round up 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
Bank of Ireland Securities Services drive our strategy forward. director of J.P. Morgan Bank
to provide sub-custody services in Luxembourg.
13 markets across Eastern Europe Britvic sells more than 1.7 billion
and Latin America. The deal will litres of soft drinks annually and Transparency will play a key role
see Bank of Ireland gain access to owns a number of well-known as international competition in
Citis proprietary network, which brands, including Robinsons, the fund market grows over the
has 57 markets across the world. Tango and Fruit Shoot. coming year, according to a new
Of these markets, 31 are in the survey from RBC Dexia Investor
Europe, Middle East and Africa MICEX Settlement House Services. Along with demand for
region. Bank of Ireland Securities (MICEX SH) has begun third-party funds and improved
Services currently has more than operating as The National performance, transparency
USD170 billion in assets under Depository Center (NDC) will be one of the main focus
custody and administration. regional representative in Nizhny points for investors, rather than
Novgorod. domiciliation. More than four out
The National Depository for of five respondents, made up of
Securities (KDPW), Poland, has NDCs participants are now to be fund promoters, distributors and
announced the creation of an served in MICEX SHs Nizhny
operational link which will allow Novgorod branch, situated at A
Bulgarian companies to be listed 46 Ulyanova str. 603155 Nizhny
on the Warsaw Stock Exchange Novgorod.
(WSE). In addition, UniCredit
BulBank, the Bulgarian custodian Of the movement, Eddie Astanin,
bank, has signed an agreement the director general of NDC
with the KDPW to provide said:The transfer of NDC
the clearing and settlement representatives functions to
of transactions of Bulgarian MICEX SHs branch in Nizhny
stocks listed on the WSE. This Novgorod represents a step
aligns closely with the KDPWs towards formation of a settlement
initiatives to establish new depository on basis of NDC and other industry players, said that
international operational links MICEX SH approved by MICEX they expected third-party funds
and to improve the profitability of Groups shareholders. For NDC to increase in popularity over the
existing links. this is a core project for 2010. next 12 months. UCITS evolution
We believe that results of the and open architecture were other
RBC Dexia Investor Services has projects implementation will factors that were expected to see
picked up a mandate to provide be in line with the shareholders an increased focus.
custody, fund administration expectations and that regional
and transfer agency services market participants will now J.P. Morgan has expanded its
to Luxembourg-based Pantera get additional opportunities reach in the Middle East, opening
Investment Grade Strategies Fund for securities trading and a new office in Abu Dhabi in an
(Pantera IGS Fund). settlements. event attended by some of the
biggest names in finance in the
The fund is an open-ended Previously the functions of region, including the Central
specialised investment fund, the regional representative of Bank of UAE chairman, Khalil
participating in purchases of bank NDC in Nizhny Novgorod Mohammed Sharif Foulathi.
medium term note and bond were implemented by Regional The bank has had a presence
issuances. Exchange Center. The terms in the region for more than
of depository services offered half a century, when The Chase
BNY Mellon has been chosen to NDC participants remain Manhattan Bank which merged
by UK soft drink firm Britvic unchanged. with J.P. Morgan in 2000 - opened
to act as depository bank an office in Beirut, Lebanon.
for its American depository
receipt (ADR) programme. RBC Dexia Investor Services has
Fund administration
Establishment of the ADR been chosen to provide custody,
program and quoting on the fund administration, shareholder
otcQX International market will Sanjiv Sawhney has rejoined Citi services and performance
facilitate ownership for a broader after being appointed global head analytics for Selector Management
range of investors who will be able of fund services for the banks Funds Luxembourg-based funds.
to benefit from any of our future securities and fund services The mandate win is the latest
successes in the US, said John division. In his new role, Sawhney in a long line for RBC Dexia,
Gibney, group finance director will take charge of the firms hedge and the second within a week
of Britvic. We look forward to fund, private equity and mutual based in Luxembourg. Last week,
building our relationship with fund administration operations. RBC Global Asset Management
BNY Mellon over the coming He was formally in charge of J.P. selected RBC Dexia to service
years and are confident that their Morgans European fund services its Luxembourg-based UCITS/
expertise and capabilities will help operations and was also managing SICAV funds.
Custody-Depositary / Trustee
Fund Administration
Corporate Trust
CACEIS benefits from an S&P AA- rating
www.caceis.com
1-15 ISJ46
Caceis adv final.indd 5
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17:06:31
News Round up 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
resident in Ireland, and has spent would not be releasing any more Directorate General Financial
people moves information about the departure Stability. The reorganisation
for the time being. is aimed at dealing with the
LCH.Clearnet Group Limited has increased responsibilities the
announced the appointment of ECB now holds in monitoring,
a new non-executive chairman, regulation identifying and assessing system
Jacques Aigrain. Mr Aigrain risks both in the euro area and
replaces Chris Tupker, who has A provision of the Alternative the wider EU.
been chairman since July 2006 Investment Fund Managers
and who announced his intention (AIFM) directive is Hector Sants, CEO of UK
to step down in September 2009. protectionist, according to regulator the Financial
the Alternative Investment Services Authority (FSA), is to
sen Management Association leave his post in the summer
pircir (AIMA). after three years in charge of
the organisation, and some
experts have predicted that his
his whole 20-year career in the replacement will take a tougher
global investment funds sphere. line with the markets.
He is currently managing director Sants, who oversaw the FSA
of the firms Dublin office. during the financial turmoil of
the past two years, had revealed
Chi-X Europe COO Hirander his intention to serve for three
Misra has stood down from years when he was initially
chris his role and left the trading appointed by the board.
tupker platform in order to pursue
other interests. Misra joined The UCITS brand has undergone
Chi-X at its inception and helped so much change since its
Mr Aigrain was previously CEO bring the platform to its current initial introduction that it is
of Swiss Re in New York, which position as a challenger to the barely recognisable to industry
he joined in 2001 as Head of major European platforms, such practitioners, the FTfm reports.
Financial Services. Prior to thishe as Deutsche Boerse and London Claude Kremer, the president of
spent 19 years with JP Morgan Stock Exchange. the Luxembourg fund association
Chase, working in a number The directive has already received
of senior roles in its New York, Sun Microsystems veteran large amounts of criticism from
London and Paris offices. Masood Jabbar has become the hedge fund industry, and
the fifth independent director the AIFM is unhappy with a
Timothy E Hartch and Sen appointed to the board of change in its most recent form
Pircir have been appointed a compromise text by Spain,
partners at Brown Brothers the current presidency of the
European Council.
claude Kremer
The European Central Bank
(ECB) has made a new Alfi, said at a press breakfast in
appointment as it seeks to deal London that the idea of a separate
with system risk in the financial category of simplified UCITS was
sector, with Mauro Grande taking under discussion at a high level
up the role of director general within the industry.
of the Directorate General
Financial Stability. The move
is part of a wider restructuring settlement
massod at the ECB, which saw the
Jabbar Directorate Financial Stability EuroCCP and Turquoise have
and Supervision become the launched their services in the
Calypso Technology, a provider Hungarian and Czech markets,
tim hartch of trading, risk and processing with EuroCCP becoming the
platforms. Jabbar spent 16 first pan-European CCP to
years at Sun Microsystems, provide clearing services in the
Harriman, the bank has reaching the level of executive 25 components of the Hungarian
announced. Hartch has been with vice president of global sales BUX index and the Czech PX
the firm since 1996, beginning in operations before leaving the firm index. The new clearing offering
the corporate finance department in 2002. will be available to any trading
before become co-head of equity venue linked to EuroCCP which
investment management in CACEIS has confirmed that trades in the BUX and PX
2005. He was also involved in Michel Bois, the managing securities.
the implementation of BBHs director of the firm at its
large cap investing strategy BBH inception in 2005, has left hector Pritchard Stockbrokers has joined
Core Select. Pircir joined BBH the company. A CACEIS sants the settlement system provided
in 2000 as managing director, spokesperson said that the firm via EMXCos automated link
with Euroclear UK and Ireland. that any personal data used, for earnings 87.8% down on the The announcement comes in
Pritchard is the latest firm to join example, social security numbers, same quarter last year. These a time of increased interest in
the service, which launched in drivers license numbers results, plus poor fourth China for the securities lending
November 2009 with a number and financial information, is quarter earnings of 6 cents per industry, with the countrys
of firms already signed up to use protected by the Massachusetts share, are reportedly due to government and regulators
the offering. The launch came at guidelines for data security. This competitive pressure on spreads recently making moves to
the same time as cross-border privacy law is also known as MA and constrained liquidity in the allowing securities lending
transaction network Calastone 201 CMR 17. market as a whole. within the Chinese markets.
announced its own plans for an
alternative. Financial institutions and Knight Clearing Services has
regulators must work together securities lending chosen to use SunGards Loanet
EuroCCP is to launch clearing to develop reference data securities finance solution to
services for European-listed standards, according to attendees
Exchange-Traded Currencies at the 3rd Annual Reference The US Securities and Exchange
(Currency ETCs). Turquoise will Data Management for the Commission has voted to
be the first multilateral trading Banking Industry conference. introduce restrictions on short run its front-office, settlement,
facility (MTF) to offer trading in Participants from a number of selling. This in a bid to relieve clearing, accounting and
Currency ETCs cleared through different institutions, including fears that the practice was regulatory operations in its new
EuroCCP. Euro CCP will clear the European Central Bank, responsible for some of the major securities lending business.
18 Currency ETCs, securities Committee of European banking collapses seen during Loanet Smart Loan will allow
traded on exchange that track Securities Regulators and the financial crisis. A majority Knight to control stock position
the performance of underlying regulatory think-tank JWG, vote among the SECs five and manage locates, with a view
currency indices, that provide warned that a tsunami of to introducing large levels of
long or short passive exposure to regulatory requirements will automation into the business.
the currencies of G-10 countries soon hit the banking industry,
versus the US dollar. but many are not ready to deal Brown Brothers Harriman (BBH)
with the new rules. has upped its presence in Asia
following the appointment of
technology Robert Lees and Richard Meek
Bravura Solutions has signed
an agreement with Calastone respectively as head of securities
GlobeOp Financial Services has which will see the firms clients lending trading and head of
announced that it has paired receive direct connectivity securities lending relationship
with Linedata Services to offer to Calastones live messaging management for the Asia Pacific
an ASP-delivered, front-office service and transaction network. commissioners saw a restriction region.
order management system Bravuras Tony Klim, CEO for put in place on stocks which fall
fully integrated with GlobeOps EMEA at the wealth management by 10%. When this threshold
middle- and back-office services. solution provider, cited the is met, only short sells at prices
This new partnership will mean Calastone networks straight- above the markets best bid will
a reduction in time to market through-processing (STP) be allowed.
for start-up long/short equity capabilities as the reason behind
managers and commodity his firms decision to partner with The Hong Kong Stock Exchange
trading advisers. It also intends Calastone. has added Wumart Stores stock Both men will move to BBHs
to enable new and existing to its list of securities eligible Hong Kong office, with Lees
hedge funds to reduce overall for short selling, potentially reporting to Jeff ONeill,
technology investment. opening up borrower interest in global head of securities
prime brokerage
the Chinese retail giants shares. lending trading, and Meek to
KBL European Private Bankers, Wumart is a non-state-owned Elizabeth Seidel, global head of
a Luxembourg-based pan- Hedge fund managers are enterprise with most of its securities lending relationship
European fund promoter, has Increasing the number of prime premises operating in Beijing, management, business
opted to join Calastones cross- brokers they use in an effort to Tianjin, Hebei and the north- development strategy and
border transaction network. KBL reduce counterparty risk, a new west of China. Short selling of marketing.
focuses on natural resources, Omgeo-commissioned survey Wumart stock will be permitted Chris Donovan, global head
emerging markets and other has found. from March 2010, adding to the of BBH securities lending
alternative investments, and 512 listed securities which are commented: We are delighted
through its UK affiliate Brown The report, carried out by eligible for short selling on the to have Rob and Richard
Shipley offers a sterling bond Greenwich Associates, found Hong Kong Stock Exchange. leading our trading, relationship
fund. that 60% of managers worldwide management and business
have diversified their prime development efforts in Asia.
The InfoHedge Hosted Platform, brokerage list, with the managers BBH is committed to enhancing
an advanced IT solution have taken steps to improve the service we provide to our
belonging to InfoHedge transparency, with one third of clients across the globe and these
Technologies, is now fully respondents saying they now seek appointments are an important
compliant with the new more independent accounting part of our strategic growth plans
Massachusetts Data Privacy and valuations. for the region.
Law. InfoHedge Technologies
is a technology provider to the Interactive Brokers, the global Go to ISJ.tv daily for up to date
alternative investment industry, broker dealer and proprietary daily news on the investor services
and has built the platform so trading business, has announced industry.
Leading edge
William J. Brodsky, Chairman and CEO of the CBOE &
Chairman of the World Federation of Exchanges, talks
to Kimberley Ferguson about what 2010 holds for him.
My objective William J. Brodsky is Chairman and CEO has also recently encouraged the Chicago Mercantile
is to continue of the Chicago Board Options Exchange (CBOE),
and in October 2008, became the first leader of a
Exchange (CME) and energy and soft commodity
market operator Intercontinental Exchange (ICE) to
to reaffirm derivatives exchange to be named Chairman of the become members of the WFE.
Speaking to ISJ, Mr Brodsky outlines the WFEs
that exchange World Federation of Exchanges (WFE).
As Chairman and CEO of CBOE since 1997, goals for 2010: The major initiative for WFE in
operations Brodsky successfully managed a period of
exponential growth and product innovation at
the aftermath of this financial crisis is to establish
better coordination among the worlds markets
were not the exchange, a particular highlight being the and regulators, so that evolving regulations are
more uniform and consistently applied throughout
transformation of the CBOEs traditional open-
connected to outcry market model into a world class hybrid the global marketplace. Specifically, the WFE has
targeted reform in the regulation of OTC derivatives
the causes of trading system.
In addition, Brodsky serves as the industrys markets, and an examination of the structure of
the current leading advocate in shaping market policy and fixed income markets as immediate priorities.
And how does Mr Brodsky expect to tackle these
regulation, and is currently guiding the CBOE
financial through demutualization from a membership challenges? My objective is to continue to reaffirm
that exchange operations were not connected to the
difficulties organisation to a for-profit stock corporation. He
Into Africa
African custody is changing. Quality in technology, regulation and services
is spreading across the continent reports Craig McGlashan.
Most people involved with the African way to go in terms of transparency. He adds: IBTC bank - the Nigerian branch of the
custody market would agree that South You have everything there, the structure; but pan-African bank Stanbic - also believes that
Africa is in pole position, when it comes to the securities law still needs to be tightened the Nigerian market has come on in leaps
both technical and regulatory infrastructure. up. It gives you the fundamentals, but if and bounds over the past few years, despite
But a number of other markets have grown you go through the old version youll have a suffering during the credit crunch.
strongly over recent years, and it is not clause which has nothing against it - its still Weve had tremendous growth in terms
inconceivable that some of these could waiting to be drafted or pulled together. of knowledge of what custody represents, of
eventually move past South Africa in For example when I was working there in what it does and of what it can do, he says.
terms of their ability to provide custody for 2007 and 2008, there was no regulation for Weve had growth in terms of asset values,
investors. custodians and its only in the last 18 months and so one can say that in the last five years
Khalid Mukhtar, director of Sectech, a that youve had to register with the Securities there has been tremendous growth in the
custodial software solutions provider with and Exchange Commission (SEC) and get Nigerian custody market.
a number of African clients, believes that their approval. So weve had custodians in the This growth may well continue. Custody
African custodians back offices are far more marketplace for some time, without any real is still a relatively new concept in Nigeria,
advanced than some may think. rules or legislation to follow. and many local investors choose not to use
In our experience, hardware has never That is not to say that the Nigerian it - but the growing number of international
been an issue, except for delays due to custodian market has not been changed players in the country may well be leading to
customs clearance. The only issue, and this is by new legislation over the past few years, a change in attitudes, although not in every
a problem across the continent, is telecoms however. Changes to capital rules in 2005 industry.
- although this has changed tremendously meant that a number of banks merged, I think from the discussions weve been
in the last few years. 10 years ago internet while the Pension Reform Act in 2004 - having that the SEC is favourably disposed to
connections were rare - but you go now and which required all Nigerians to contribute compelling mutual fund managers to use the
every organisation is connected. In terms of toward their state pension - meant that a services of custodians, just like pension fund
hardware specifically, I dont think thats an new branch of custodians emerged. These managers have been compelled to, Sanni
issue. pension custodians - all local - are separate says.
South Africas position as a developed from general custodians, and instead of being But to compel stock brokers to relinquish
market may well have aided this situation, regulated by the SEC they are governed by the custody of clients assets and limit their
Mukhtar explains: Any hardware that comes the National Pension Commission (NPC). responsibility - that has been met with fierce
into South Africa gets passed around the Indeed, two Nigerian banks - First Bank resistance from stock brokers and I cannot
other countries as all the banking hardware and UBA - operate in both the general and say how that will pan out.
distributors are usually based in South Africa pension custody spheres, but the different However, Nigeria still has its problems.
and all of Africa benefits from it. branches must be completely separate legal Corruption is still rife, and while banking
Indeed, the fact that many African banks entities, with different offices and separate infrastructure may be up to international
have the latest technology and are not mainframes. standards, general infrastructure is not.
running legacy systems may give them According to Lawrence, this model has Regulators - based in the capital, Abuja -
some advantages over their peers in more proved a success in terms of regulation. are an hours flight away from Lagos, the
developed markets, Mukhtar adds. Theyve really tried hard to make it work financial centre, which can also mean they
To many, the most obvious candidate as well, he says. I would say the NPC is more are behind the game.
a rival to South Africas crown would be advanced than the SEC, but then it has a No one doubts Nigerias potential - and
Nigeria. With a population of nearly 155 smaller market to play with they only it is quickly gathering the infrastructure
million it dwarfs the next largest country have five custodians and 32 pension fund and expertise to match - but how can it
(Ethiopia, with 85 million) and has huge oil administrators. They also dont have the move ahead? Three things need to be done,
reserves. This has of course led to perhaps as legacy of old documentation. according to Toyin Sanni, head of custody at
many problems as it has provided wealth to While Nigeria may not be fully developed UBA.
the general population. in terms of regulation, custodians in the We need to fix our electoral process; we
Corruption has been at the source of many country have access to advanced technology. very urgently need to have electoral reforms,
of these problems, and the Central Bank of They have an infrastructure and it works; with credible and tenable electrical processes.
Nigeria has recently pledged to address this theres a central securities depository called We need to have our power infrastructure
issue. Indeed, in February, a Fitch Ratings CSCS, its electronic, and that process works. challenges fixed - we need a government
report said that corporate governance and However, he adds: Its not a totally that will address our power problems. We
accounting disclosure within the banking dematerialised market if you want your also require corruption to be dealt with
sector had begun to improve as a result of physical share certificates its going to take definitively, she explains.
the Central Banks initiatives, although more you a bit of time. Thats one of the problems I think that if those three issues are fixed
improvement could be possible. we have in the market if you want to hold Nigeria will be very much on the way to
Bruce Lawrence, from HBL Consultancy your share certificate you do suffer the greatness.
Services, works heavily in the Nigerian incompetence of the registrars. However, Nigeria is not the only market in
market. He says that Nigeria still has a long Segun Sanni, head of custody at Stanbic Africa that is advanced in terms of custody.
10
securities.bnpparibas.com
BNP Paribas Securities Services is incorporated in France with Limited Liability and authorised by the French Regulators (CECEI and AMF). BNP Paribas Trust Corporation UK
Limited and Investment Fund Services Limited are authorised and regulated by the Financial Services Authority. BNP Paribas Securities Services London Branch is authorised by the
CECEI and supervised by the AMF and subject to limited regulation by the Financial Services Authority. Details on the extent of our regulation by the Financial Services Authority
are available from us on request. BNP Paribas Securities Services is also a member of the London Stock Exchange.
11
Ramy Bourgi, head of emerging markets central depository system; they were one of example,government giving taxincentives
development for Socit Gnrale Securities the early adopters of automated trading, so to use collective investment schemes as
Services, believes that Egypt and Morocco certainly in Kenya I see great potential. an alternate means to traditional saving,
also have a claim to be leaders on the They are in the process of finishing off she says. Ialso believe that Mauritius is
continent - particularly when compared to the last segment of immobilisation - namely well positioned to ease investment into the
Nigerias regulatory record. corporate bonds. They are still physical but regionfor reasons already stated above.This
The regulatory factor is the most they have planned this year to immobilise would, however, require that the other
important and customers, when they go into those. But all other securities are automated. members have adequate regulations, if not
a market, would look at the risk/return and Wooldridge describes Kenya as a bright common ones, for investments.
the risk today is not just market risk, he star on the continent in terms of being a Mauritius may have one of the most stable
says. Its market, insolvency, compliance, well-run market. Efficiency is excellent, economic and political histories among the
regulatory, repatriation, operational - there dividend payment is very good - so they African nations, but one country which
are a lot of risks. And I think this is why dont have any of the problems investors does not is Zimbabwe. However, it may be
Egypt, Morocco and South Africa have been associate with frontier markets. surprising to those living in the West that the
ahead of the game. Wooldridge also points to other markets recent turmoil in the country has not meant
He adds: The second factor is population. that Barclays has a presence in, a total of 10 its financial institutions are in ruins.
The economies matter. The Egyptian stock across Africa. He believes that Mauritius,
exchange now is at a EUR106 billion - one of the smallest countries in Africa in African custodians
and it was not unscathed by the financial
crisis. We really are finding that clients
terms of population, is also one of the most
advanced in terms of custody and financial
back offices are far
want competition in those markets. They services. This is partly as a result of the fact more advanced than
have grown to the size that its very open that Mauritius has one of the most stable
to competition - now Egypt and Morocco economic and political histories among the some may think
are featuring more and more in peoples African nations, according to Wooldridge. Sectechs Mukhtar explains: We always
investments and I think people are looking Jennifer Ah Leung-Bundhun, custody forget about Zimbabwe. In terms of the
for competition - which will always give you business unit manager at the Mauritius market infrastructure, in terms of the
a better service and a better value for the Commercial Bank, agrees that the political attractiveness of the market, it has done well.
client. stability and economic prosperity of Of course, because of the situation there, we
However, Chris Wooldridge, head of Mauritius cannot be disputed. dont really hear anything positive.
securities services at Barclays Emerging She adds: The financial services What is interesting to note is that the
Markets, cites some markets as being the sector is a contributor to that economic stock market is still ok - it hasnt been
most exciting in Africa. Barclays offers prosperity thanksto its regulators, modern affected as much as we think it might have
custody services in 16 African countries via infrastructureand know-how.I can hardly been.
a combination of proprietary subsidiaries see any other African countrieswith such a However, despite the power-sharing
and agent banks, and believes that people track record. Its position as a key interface agreement now in place in the country, there
should be looking at Kenya and Mauritius. between Asia and Southern and Eastern are still problems - in February, president
Kenya is a very well established market Africa - shown in its membership of a Robert Mugabe defended new regulations
thats been running well for decades, he number of regional organisations - is also a which would see large corporations,
says. They have a history of prudence benefit, she believes. including banks, be required to sell 51% of
in developing their market, so its well Leung-Bundhun also sees great potential shares to locals.
regulated, its got good infrastructure, and in the Mauritian market. Making Many of the countries in Africa could stake
changes are well planned and developed. custodians compulsoryfor investors a claim to being the next South Africa, each
Kenya was one of the early adopters of a appointing an investment manager, for for various reasons. Some have got things
right that others have not, while others
simply have too much potential to stay
quiet for long. While people will have their
opinions, it is probably impossible to say
which of these markets will develop fastest
and furthest. What is certain, however, is
that the African market as a whole is far
more advanced than many may think.
We have clients in 10 countries in Africa,
says Mukhtar. All of us travel to all these
countries regularly and have never faced
any problems. The reality in Africa is much
better than the perception. Unfortunately, it
is the perception that we need to change and
that might take a while.
Africa certainly has its problems, but
perhaps sometimes the Western
media focuses too much on the negative
Khalid Muktar and not on the positive - such as the rapidly
Sectech developing and maturing investment market
in the continent, and the custodial services
to back it up.
12
I need some
inspiration and
a fresh business
strategy
Daniel MacKinley, Vice President
(would benefit from attending this Summit)
CEE Hear
SEB is a major European provider for sub-custody
custodians operating in Central and
Eastern Europe, writes Ulf Noren of SEB.
same trading technology set-up as the three Nordic NOMX-markets. That also
services with a very strong presence in the seven goes for readiness to meet competition in the shape of MTFs and other forms
Nordic/Baltic markets (Denmark, Finland, Norway, of trading mechanisms. Our forecast is furthermore that Estonia will be joining
Sweden, Estonia, Latvia and Lithuania). In addition the Eurozone in 2011 (acceptance early summer) while we believe Latvia and
SEB has a growing sub-custody presence in Ukraine Lithuania to do so in 2014. This, and put in the context of Target 2 Securities
and Germany and has also established a sub-custody development, will place SEB in a very good position to be unique as the one and
operation in Russia as late as 2008. Thereby, SEBs only sub-custody bank with an on the ground service in the seven Nordic/Baltic
sub-custody markets are made up by 5 traditional T2S markets.
Western European ones and 5 normally defined as The financial crisis hit Europe hard and the CEE markets the hardest. The worst
CEE markets. In the below, we will have a closer look now seems to be over in the Baltics and all three economies are supported by an
at the 5 Eastern Europe markets and how they fit into incipient recovery in global demand. The development of the markets will be very
the offering. much dependent on the politicians stamina to show ability to balance the positive
SEB firmly believe that the future of being a signs with the continued need for pay cuts and tax hikes, leading to unpopularity,
European provider is tightly knit to the providers risk of lower consumer confidence and internal tensions. Naturally, for this to be a
tactical and strategically positioning when it comes to successful turnaround, the peg to the EUR must hold (and we believe it will) and
a number of fundamental choices of which regional the international bail out packages for Latvia cant be discontinued.
reach is one. We are now in the early maturity SEB will certainly remain in Eastern Europe and see the markets as
phase of regional thinking where most clients of necessary compliments to our regional portfolio of countries served, more so in
significance have made a choice to regionalise all or the future than today.
parts of certain European clusters (like the Nordics,
the Euronext markets, CEE etc) and are looking for
the next step. A natural next step is to increase the
geographical scope to look for an EU-provider, a
EUR-Custodian, an all-of-the-continent Custodian
and similar constructions. Most clients finds no
complete answer to this strive but the positioning,
fuelled by certain European regulatory and macro
development happenings, will drive Custodians in
the direction of either providing more markets than
what the client buys today or slowly deteriorate.
Strengthening and cementing the position in the
five current Eastern European markets plays a very
important role in SEBs tactical positioning plans.
Europe is in the beginning of a dramatic re-shape
of the trade and post trade landscape. There are a
multitude of drivers for this shift but a lot is tied to
three mainstream features:
- The increasing competition on trading
- Increased operational & cost efficiency Ulf Noren
gains and risk mitigation SEB
- Political efforts to harmonise Europe
14
16
17
18
19
Godfried De Vidts
Chairman of the Developments in
International Capital
Market Associations, the European
European Repo Council
considers the market. repo markets
Without doubt the secured financing or with the co-operation of both Euroclear
repo market in Europe has had a remarkable Brussels and Clearstream Luxembourg. The
run over the past 15 years. Repo was adopted ERC has requested similar interoperability
in Europe in the mid 1990s by national for the triparty product to support central
central banks, based on principles used in clearing of baskets (in one form or the other)
the USA. The creation of the Euro currency in order to free-up liquidity.
provided added impetus to the development From a regulatory perspective, some 10
of what became by June 2007 a mature EUR years ago the Giovannini working group
6. 7 trillion market (source: ICMA- ERC concluded that there was a need to create
Repo Survey June 2007), providing liquidity an adequate cross-border clearing and
to many financial institutions. The industry settlement framework in Europe - but this
has worked hard to develop this market the would not be possible unless a number
creation of the Global Master Repurchase of barriers were removed. In the last 10
Agreement (GMRA) in 1995 (revised in years significant work has been carried
2000) and the provision of 68 supporting out by industry to dismantle many of the
legal opinions, which are updated annually, barriers, yet some still remain as national
provide a robust, legally certain, cross- protectionism prevents the creation of a
border framework that is used globally. seamless clearing and settlement framework.
And indeed the industry continues to work
on the development of the market, with a Collateral management
number of projects already in the pipeline to A project closely watched by the ERC is the
improve the efficiency of its infrastructure. new single platform for the management of
This article highlights some of these, in the Eurosystem collateral, known as CCBM2
areas of clearing, collateral management, new (Collateral Central Bank Management).
forms of eligible collateral and a revision of Market participants sincerely hope CCBM2
the GMRA. will create a borderless way of bringing
At the same time, regulatory proposals collateral to the Eurosystem, independent
are currently being debated which should of national requirements - they would have
be given very careful thought prior to the option of choosing one national central
implementation to reduce the risk of Global standards clearing bank for all collateral flows towards the
damaging the repo market - which is one of The repo community can point to a number Eurosystem, which would create a cost-
the largest and most active sectors in todays of successful industry initiatives. In 2009 effective way of dealing with the complexity
money markets and, as evidenced in the the G20, supported by EU Member States, of the enlarged currency zone. However,
recent market turmoil, plays a critical role in advocated maximum use of central clearing. there is a need to widen this discussion on
liquidity provision for the financial system. However, the repo market had established a global scale. Often market participants
The impetus to regulate the OTC markets the use of Central Counterparty (CCP) have collateral in one currency zone, while
in Europe is gaining momentum, and will Clearing in Europe in 1999 when LCH Ltd, lacking cash in another. As the credit crisis
impact the repo markets. Additionally, the supported by market practitioners in the has shown, flexibility to move collateral
forthcoming MiFID review will cover not Repo market, created Repoclear. This was around is crucial. CLS bank has largely
only equities, but also the fixed income and followed by Clearnet (later merged into LCH solved the time-zone issues for foreign
derivatives markets; and it is highly likely Clearnet group), Eurex Clearing and CC&G. exchange transactions. Discussions between
that these markets will be required to be However two euro-zone countries still lack a policy makers and market participants
more transparent, particularly in relation CCP, despite calls from market practitioners, should lead to, at the very minimum, a
to post trade transparency. We also expect and national barriers to connecting directly global solution that can be quickly used in
a European directive on clearing. In order to local central securities depositories (CSDs) case of stress in markets in delivery versus
to ensure the repo market remains robust prevent direct connectivity. payment. Ultimately that framework could
and well functioning, while still being open Another successful industry driven solution be the basis for a global collateral framework
to innovation, the repo community must has been the constant improvements in the underpinning the bilateral secured markets.
be ready to interact with regulators and the bridge, the interconnectivity between the New forms of eligible collateral
central banks. two international CSDs (ICSDs) achieved As witnessed in the crisis, central banks
clearly understood their role as lenders of
22
last resort. The Eurosystem had, prior to bubble, LTCM, the Russian and emerging central bank operations; rather the bulk of
the events of summer 2007, a wide range of market crises, and the recent credit crisis. transactions are actually between wholesale
eligible collateral at its disposal. This gave Each time it has provided the necessary market participants and are witness to a
market participants the option of using less legal protection in the event of counterparty free flow of liquidity from institutions long
liquid assets as collateral in Eurosystem default. of cash towards those in need of short term
operations, thereby keeping highly Complacency at this point would however funding.
liquid assets (especially euro area central be wrong. Under the guidance of the ERC The Basel Committee has also looked at
government bonds) for use in repo market the GMRA is currently being revised to liquidity. Without a doubt more work has
transactions. So, when help was needed provide an updated version - taking into to be done in this area. ERC members have
during the crisis, adequate flows of liquidity account the lessons from the crisis in the often discussed the appropriateness of the
against collateral were available. Other area of legal protection to produce a legal collateral to be used in the light of adequate
central banks followed suit. The wisdom document that is fit for the coming decade. liquidity of the underlying. Liquidity can be
of central banks in previewing and back- The GMRA has bridged the lack of a single impacted by many influences and it is often
testing these facilities proved to be the right European capital market by providing a the repo trader who has the clearest picture
investment and market participants applaud robust cross-border agreement used globally. of a bonds liquidity. The Basel Committee
these measures. has suggested the use of liquidity buffers.
A new initiative is underway to extend Regulatory proposals Liquidity buffers that can only be created
the range of collateral available, with the The current regulatory review of the with the use of the best liquid collateral
creation of a facility allowing banks to financial system should avoid inadvertently make sense in principle, however, here
submit unsecured loans to the corporate endangering what has been achieved so also one has to be careful of unintended
sector as collateral to the Eurosystem. The far. When the Basel Committee decided to consequences.
use of these credit claims has risen, although upgrade the Basel 1 framework into Basel The call by the G20 for increased use
the debate about their appropriateness 2, adequate provisions were embedded of central clearing for many products
remains. The European Commission, in to support migration from unsecured such as IRS and CDS, will require initial
the revision of the Financial Collateral to secured lending practises. This was margins, variation margins and default
Arrangements Directive (FCD), has implemented in Europe and was in place fund contributions. These can be serviced
provided the legal framework. The board of as of the beginning of 2007. Its beneficial either in cash, or in the form of adequate
the International Capital Market Association effects have been somewhat hidden because collateral. Bilateral clearing will also get
has decided to back this initiative with of other events; notably the use of a wide increased attention and the enhanced use of
funding to create the legal framework for range of collateral without adequate daily current bilateral collateralisation will create
the secondary market in credit claims. The pricing. The financial markets have lived a need for additional collateral. Cash is king,
Loan Market Association is involved in the through a period of excesses that need to be but due to the evolving Basel framework it
project; and the ICSDs have been asked corrected, however, it would be unfortunate will become even more expensive. The use
by the ERC to create a common unique if these events brought into question market of government bonds will be part of the
data base, which can work largely similar participants ability to organise an adequate framework to fulfil calls for risk mitigation
to the corporate bond market facilities framework for well functioning repo techniques, but there are real doubts this
created by them. Discussions with ANNA markets. Best practice in this market has will be adequate to fulfil all needs, even
(the Association of National Numbering already been put in place to a large extent, with the current high issuance levels. Non-
Agencies) re a unique identification number with haircuts being used in various forms government bonds that are part of central
are progressing and SWIFT has agreed to and eligibility sheets for collateral, as well as bank eligible programs provide a good
create a unique messaging system. credit lines for counterparties which have to alternative and as such equivalent provisions
be validated by each banks risk committees. should also be included in the Basel liquidity
GMRA Documentation Banks are risk takers and the intense buffer regime. Market participants will
The 2009 European Commission competition between banks provides a solid respond to the various consultations by
consultation on the safety and resilience base for cheap credit to the real economy. the various policy makers. In this respect I
of the OTC derivatives market highlighted Providing a regulatory framework with fixed am hopeful that an adequate compromise
the need for standardisation in order for haircuts (even by each underlying collateral regarding the many issues on the table can
markets to be manageable. In this context type) may prove to be counterproductive be found. This will provide an adequate
the creation of the GMRA provided a solid to competition and have unintended response to the G20, to have a more robust
legal framework for the development of consequences for the flows of liquidity framework in place that should be the base
secured markets. The GMRA has been tested between wholesale market participants. of a sound financial system fit to respond to
in a number of financial crises - the dot-com Repo markets are not only used for its responsibilities.
23
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Counter Top
Anthony Harrington explores the perceptions and realities of
OTC derivatives for custodians and their clients
Derivatives have not enjoyed a par- take liability for the process of calculating a if they cannot calculate the value of an OTC
ticularly good press, following their role in value, which means that if the formula says derivative they are trading, they shouldnt be
precipitating the financial meltdown and take A, add it to B and multiply it by C, we trading it, he says.
the subsequent global recession. However, will do that process, but we wont guarantee Kathleen Struye, Director, Derivatives
the consensus view across the investment the base feed information that gives you Product Management at Euroclear points
industry is that derivatives are far too impor- values for A, B and C. The client has to agree out that Euroclears DerivManager product
tant and useful an asset class to be knocked both the model and the inputs to the model. has been attracting sustained interest from
back by a welter of bad headlines. What has Moreover even if we get it wrong we will put investment houses to manage the expo-
happened, post the crash, however, is massive a ceiling on the liability, Ingle explains. sure on OTC derivatives deals. Accurately
pressure for derivatives to be monitored What is it that makes valuing derivatives establishing and reporting the exposures that
much more closely than they were. This in so tricky? As Ingle explains in highly volatile counterparties run bilaterally as a result of
turn has generated a huge demand for the markets, even comparing yesterdays values to OTC derivative trading is critical to provide
processing and valuation of derivatives as an todays values can generate a very wide range. the basis for margin calls and other activities.
outsourced service. The major custodians all So the provider has to scrub the value to Our clients are very interested in transpar-
have offerings in this space. ensure that the range is sensible and is in the ency and clarity as to what happens in the
Steve Ingle, Global Product Manager for right direction. But the counterparty to the derivatives market. A key part of eliminat-
Derivatives at Bank of New York Mellon deal will almost never reveal the model that it ing counterparty risk from these trades is
Asset Servicing, points out that there are a is using to value the trade, so there is always by ensuring that the resulting exposures are
number of different models out there used the potential for breaks and mismatches that fully collateralised at all times, she says. This
by custodians, depending on the individual require more examination time and expen- is where the post-trade space that Euroclear
custodians strengths. We have a capital mar- sive human intervention to resolve. specialises in, meets the trading area and day-
kets front office desk and our outsourcing We perform common sense checks, but to-day derivatives valuations.
offering on derivatives reflects this, he says. there are always counterparties to OTC Jonathan Davies, Vice President, Sapient
There is a large and growing body of sup- derivatives deals that are outliers to the aggre- Global Markets, which provides services to
pliers specialising in the valuation of specific gated data. So when you perform a scrub and the financial and commodity markets, says
kinds of derivatives, and those custodians a comparison, there is about a two percent that his firm has just completed a major sur-
without strong internal expertise will act as break, or mismatch, on average. So custodi- vey of wealth managers about the operations
an aggregator for their clients for a range of ans and outsourcers have to do a great deal of and technologies they need to support the
valuation suppliers. However, there are also work to make the price for an OTC derivative front office. With derivatives, what the survey
OTC derivatives, particularly for the larger appear as clear and clean as the price for a showed was that the high net worth clients
houses, that really do need the custodian to bond or an equity, he comments. of the big wealth management houses want
have the capacity to do in-house valuations. Valuation time frames also vary widely. up to date valuations of whatever derivatives
As Ingle notes, these clients have their own BNY Mellon provides everything from they have invested in, but they want to be
formulae for valuing derivatives that they monthly valuations to intra-day valuations. able to view these valuations as part of their
expect the custodian to apply. BNY Mellon The latter can be particularly important total portfolio.
has both strings to its bow. It will act as an where, for example, the client has trading The problem the wealth management
aggregator and manager and it will provide desks in multiple time zones sector faces is that it has traditionally imple-
in-house valuation services as well. The first thing to note is that you do not mented a silo view of each asset class. This is
As with any outsource service there is the custody a derivative, since it is just a contract not what clients want, Davies says. Instead,
question of supplier liability to be resolved, between two parties. So we act as the admin- clients want to get a total view so wealth
and with derivatives, errors here can poten- istrator and or accountant to one of the par- managers are now putting pressure on cus-
tially be huge. In an ideal world, the client ties. If we are the accountant, the investment todians to align their systems with the wealth
would want the custodian to be absolutely manager client needs a process internally that managers requirements to provide complete
liable for any and all errors. However, the produces values. They cannot just rely on our portfolio views.
realities of life mean that no custodian is figures since they have to have a risk process Ultimately the derivatives valuation feeds
going to offer a service for x fee and accept in-house that shows them what they are com- and reports from the custodian have to come
either unlimited liability or a liability that is mitted to, Ingle comments. in a form that will enable the wealth man-
a massive multiple of that fee. The custodians figures then are there for ager to provide the investor with the right
The challenge we all face is that it is very transparency, independence and to show information on their portal without manual
difficult to get to a clean price for an OTC the clients auditors where the figures have intervention in presenting or reconciling
derivative in anything like the time frame come from. This means that the custodians the data. Custodians who can do this will
that it takes to scrub equity or bond pricing valuation process has to be fully auditable. succeed, those who cant or wont will lose
from a Bloomberg or Reuters feed. We will My point to any investment manager is that business, he says.
24
BHF Asset Servicing GmbH comprises the custody, depotbanking Strahlenbergerstrae 45;
and securities services of BHF-BANK Aktiengesellschaft. With around 63067 Offenbach a.M.
250 members of staff, approx. EUR 270 billion in assets under Germany
administration and a depotbanking volume of EUR 85 billion, BHF Contact: Moritz Ostwald
Asset Servicing GmbH is one of Germanys leading specialists in Phone:+49 69 667744 838
depotbanking and custody business. It develops innovative and high- Email: moritz.ostwald@
class services for investment companies, institutional investors and bhfassetserv.com
foreign banks, and excels at tailoring solutions to the individual needs
of its clientele.
Assets under Administration: EUR 270 bn
No of funds: 478
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 Contact:
dealing with Nordic and Baltic securities. Due to the unique history of Nina Groth
being formed from four established banks, Nordea is the only Nordic Head of Sub-custody and
custody provider with strong local presence and expertise in all four Clearing
markets. Nordea combines Nordic competence with local expertise, Tel: +45 3333 6124
and has proven ability to deliver high quality services that meet E-mail: nina.groth@nordea.com
both clients and each local markets requirements. 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.
25
RBC Dexia Investor Services 71 Queen Victoria Street, London, EC4V 4DE, UK T : +44 (0) 20 7653 4096
Standard Bank 25 Sauer Street , 2nd Floor, Entrance 3 Johannesburg 2001, SA T: +2711 636 6615
State Street 225 Franklin St, Boston, MA, United States T: +1 (617) 482-3709
Fund Administration
26
Custom House Global Fund Services Ltd. (CHGFS), the Malta based Custom House Global Fund
parent company of the Custom House Group of Companies (Custom Services Limited
House), was established when Equity Trusts fund services division was
Head Office Address:
merged into Custom House in September 2008. CHGFS is recognised
Tigne Towers
as a fund administrator and licensed under a Category 4 license as
Suite 33
a Custodian for Funds of Funds and is also an authorised Trustee for
Tigne Street
Trusts.
Sliema 3172
Custom House offers a full 24/5, round the world, round the clock
Malta
administration service out of its offices in Amsterdam, Chicago, Dublin,
Guernsey, Luxembourg, Malta and Singapore. This service, which www.customhousegroup.com
enables Custom House to offer daily dealing NAVs covers all aspects Contacts: Dermot S. L. Butler,
of day to day operations, including maintaining the funds books and Chairman
records, carrying out the valuations, calculating the NAV and handling all dermot.butler@
subscriptions and redemptions, as well as over-seeing payment of the customhousegroup.com
funds expenses. T: +353 1 878 0807
Custom House uses the PFS-PAXUS fully integrated fund Albert Cilia, Managing Director
administration system. Reporting is effected through CHARIOT, Custom albert.cilia@
Houses secure web-reporting platform for managers and investors. mt.customhousegroup.com
Custom House is fully SAS70 compliant and the Dublin office was the T: +356 2702 2799
only hedge fund administrator in the world ever to be awarded a Moodys
Management Quality Rating. CHGFS and its subsidiaries are fully
regulated, as required, by the relevant authorities in their jurisdiction.
27
British Virgin Islands Haycraft Building, 1 Pasea Estate, Road Town, Tortola, British Virgin Islands T: +1 284 494 1509
Jersey Finance 4th Floor Sir Walter Raleigh House 48-50 Esplanade, St. Helier, Jersey, UK, JE2 3QB T: +44 (0)1534 836000
Guernsey Finance PO Box 655, St Peter Port, Guernsey, GY1 3PN, UK T: +44 (0)1481 720071
Equens Eendrachtlaan 315, 3526 LB Utrecht, PO Box 30500, 3503 AH Utrecht T: +31 (0)30 283 51 11
Vocalink Drake House, Homestead Road, Rickmansworth, Hertfordshire, WD3 1FX T: +44(0)870 1650019
Prime Brokerage
Barclays Capital 5 The North Colonnade, Canary Wharf London E14 4BB, United Kingdom T: +44 (0)20 7623 2323
Citigroup Global Prime Brokerage Services/Prime Finance Canada Square Canary Wharf,London, E14 5LB, UK T: + 44-20-7986-0675
Credit Suisse 20 Columbus Courtyard London E14 4DA T: (020) 7888 8888.
Hermes Administration Services Peterborough Court 133 Fleet Street, London EC4A 2BB, United Kingdom T: 020 7774 1000
Morgan Stanley 25 Cabot Square, London, E14 4QA T: 020 7425 8000
Scotia Capital 40 King Street West 63rd Floor Toronto Ontario M5W 2X6 Canada T: 001 416 863-7411
Securities Lending
28
Euroclear Euroclear Belgium, Avenue de Schiphol 6, 1140 Brussels T: +32 (0)2 337 5111
FINACE is the only fully integrated solution today which supports T: +41 (0)44 298 92 00
the future business model within the area of Securities Finance and F: +41 (0)44 298 93 00
Collateral Management. The architecture of FINACE is based on a A: COMIT AG,
stable, leading edge technology platform, which was developed with Pflanzschulstrasse 7,
performance and robustness as the focus of design. With flexibility at CH-8004 Zrich, Switzerland
its core, customer-driven extensions and modifications can be quickly W: www.finacesolution.com
and easily applied to the standard component set. www.comit.ch
Fortis Bank wNederland NV Rokin 55, 1012 KK Amsterdam, The Netherlands T: +31 20 527 1637
JP Morgan 60, Victoria Embankment, London EC4Y OJP T: +44 207 742 0256
19th Floor SecFinex 60 Cannon Street London EC4N 6NPX T: +44 (0)20 7002 1003
29
Technology
Accuity Market House 124 Middleessex Street Bishopsgate London E1 7HY T: +44 20 7014 3454
Advent Software 1 Bedford Avenue, London, WC1B 3AU, UK T: 0207 631 9240
Bravura Solutions Austin Friars House 2-6 Austin Friars London EC2N 2HD, UK T: 020 7997 3000
Calypso Technology 17 Dominion Street, London, EC2M 2EF, UK T: 020 7826 2 500
DST International DST House, St Marks Hill, Surbiton, Surrey, KT6 4QD T: +44 (0)20 8390 5000
Eagle Investment Systems LLC is a global provider of financial
services technology serving the worlds leading financial institutions. Eagle Investment Systems LLC
Eagle provides enterprise-wide, leading-edge technology and The Bank of New York Mellon
professional services for data management, investment accounting Financial Centre
and performance measurement. Eagles Web-based solutions 160 Queen Victoria Street,
support the complex requirements of firms of any size including London
institutional investment managers, mutual funds, hedge funds, UNITED KINGDOM
brokers, public funds, plan sponsors and insurance companies. EC4V 4LA
Eagles product suite is offered as an installed application or can be Phone Number: 44 (0)20 7163
hosted via Eagle ACCESSSM, Eagles ASP offering. Eagle Investment 5700
Systems LLC is a subsidiary of The Bank of New York Mellon E-mail: sales@eagleinvsys.com
Corporation. To learn more about Eagles solutions, contact sales@ Website: http://www.eagleinvsys.
eagleinvsys.com or visit www.eagleinvsys.com. com
30
31
Princeton Financial Systems 600 C ollege Road East, Princeton, NJ 08540, USA T: +1 609-987-2400
Redi2 Technologies, Inc. 1771 Br oadway St., Oakland, CA 94612 T: +1 (510) 834-7334
SmartStream Technologies 1690 Park Avenue Aztec West Almondsbury Bristol BS32 4RA UK T: +44 (0)20 8390 5000
Witholding Tax
32
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