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DBS, HSBC and Standard Chartered Bank.
The PoC will explore whether DLT can help
simplify the currently inefficient manage-
ment of shareholder meetings and the
associated voting processes that are often
time-consuming and resource intensive.
˜ ˜ Apex Group has announced it will
acquire fund administrator Atlantic Fund
Services, which has been a frequent
recipient of mutual fund administration
awards from Global Custodian following
consistent results in our annual surveys
– earning recognition for compliance and
value over the past two years. Apex is also
set to takeover US private equity fund
administrator Broadscope making it four
deals in the first three months of the year.
˜ ˜ Northern Trust is set to roll out a new
asset servicing technology architecture
that will sit on top of its existing custody
and fund administration platforms. The
event-driven architecture, called Matrix,
will aim to centralise all of the data cap-
tured by underlying custody, fund admin-
istration and transfer agency platforms.
˜ ˜ Deutsche Bank will move its global
collateral management operations to
a cloud-based platform operated by
CloudMargin. The move makes Deutsche
Bank the first of the major global banks to
adopt cloud technology for collateral and
margin management and is part of the
German bank’s global transformation and
cost savings programme.
˜ ˜ The London Stock Exchange has
acquired a 4.92% stake in Euroclear for
€278.5 million, following a similar move
by one of its trading venue rivals last year.
Euroclear is privately owned by over a
hundred user-shareholders and has seen a
number of transactions in its shares over
the past 12 months.
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TOP PREMIUM NEWS
˜ ˜ A new securities lending platform, pow- ˜ ˜ State Street is introducing a new ap-
˜ ˜ BNP Paribas Securities Services has been ˜ ˜ BNY Mellon’s chief executive outlined
ered by blockchain technology and backed by
Deutsche Boerse, is set to launch in the next
six months with a number of banks expected
to be day-one participants. Deutsche Boerse’s
Clearstream business is one of the main back-
ers for HQLAx, a securities lending platform
using R3’s blockchain technology, that allows
collateral to become tokenised and held by a
custodian without physically moving.
selected to provide global custody services to
China Merchants Bank (CMB). The man-
date will also cover custody and settlement
services for CMB’s international fixed income
securities, derivatives and equities assets in
Hong Kong, Singapore and the US.
˜ ˜ Societe Generale has agreed to sell its
South African custody, trustee and clearing
business to Absa Group, while also announc-
ing it will shut down its securities lending
and borrowing services at the end of the first
quarter. The deal will see Absa Group enter
the South African custody and trustee space
five years after selling its own business to
Standard Chartered.
˜ ˜ SS&C Technologies have started to inte-
grate the flagship products of Eze Software
and Intralinks into its fund administration
business. Rahul Kanwar, president and chief
operating officer for SS&C Technologies,
explained it has already implemented some
synergies with Intralinks’ products. SS&C
completed the acquisition of Intralinks in
November for $1.5 billion.
˜ ˜ Broadridge has conducted the first proof
of concept of a blockchain-based proxy vote in
Japan. Alongside ICJ, a joint venture company
of Broadridge and the Tokyo Stock Exchange,
the proxy vote took place using Quorum as
the underlying distributed ledger technology
(DLT).
proach to doing business with its biggest cli-
ents, including a new committee evaluating
pricing decisions and their impact across the
bank.
The new approach includes a “One State
Street experience”, a full front-to-back plat-
form combining services from Charles River
Development (CRD) and its traditional
custody and fund administration business.
to investors it is onboarding a number of
high-profile clients for its Pershing busi-
ness, and is planning further improvements
to its asset servicing division.
Charlie Scharf, CEO and chairman of BNY
Mellon, explained on its fourth quarter
earnings call that while revenue for Pershing
declined 2% year-on-year, it is preparing to
bring on a strong line-up of new clients.
˜ ˜ BNP Paribas Securities Services has lost
a major fund administration and custody
mandate from DWS to service €240 billion
of its assets after a mutual agreement to
terminate the deal.
The landmark deal for the French custodi-
an was announced in June 2018 as DWS, for-
merly Deutsche Bank Asset Management,
picked BNP Paribas Securities Services for
its funds in Luxembourg and Germany.
˜ ˜ The US Securities and Exchange
Commission (SEC) is in talks with State
Street over a potential settlement alleging
the bank had overcharged certain custody
clients.
State Street revealed in its annual report
that the SEC is in the process of bringing
an action against the bank claiming that
it overcharged registered investment
companies for custody expenses. The action
would accuse State Street of violating the
Investment Company Act of 1940 through
the overcharges.
Spring 2019
globalcustodian.com
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