ISSUE022 ASSETSERVICINGTIMES 14.09.2011 WEDNESDAY AST www.assetservicingtimes.com CONTENTS HSBC launches escrow services in Vietnam HSBC Securities Services (HSS) has launched escrow services in Vietnam. page2 Wells Fargo acquire LaCrosse Wells Fargo & Company has announced an agreement to acquire LaCrosse Glo- bal Fund Services. Post trade model battle heats up page3 EUROPE 12.09.2011 Country focus As the competition for market share among European we very strongly believe in and where the big domi- Canada has managed to weather finan- exchanges continues to heat up, two competing mod- nance struggle over clearing and settling trades is go- cial storms coming from the south and els are emerging in the provision of post-trade services ing to be in the next few years,” said Belinda Keheyan, across the Atlantic. to trading partners. Interoperability – the practice of director of marketing for Chi-X Europe. page5 diverse and disparate organisations working together – and the vertical silo model, when the exchange owns The London Stock Exchange (LSE) and Deutsche Bo- Industry training and, arguably, controls clearing houses. erse are moving towards the vertical silo model as the All the leading industry courses over the two exchanges lose market share to alternative trad- coming months. Chi-X Europe, a major European exchange with some ing platforms like Chi-X Europe. The London Stock page8 20 per cent market share for total turnover, will be the Exchange recently announced a majority bid for LCH. first to offer four-way clearing interoperability to all its Clearnet while Deutsche Borse and NYSE Euronext Industry events trading partners. EMCF, EuroCCP, LCH.Clearnet and continue to make their way through regulatory approv- Dates for your diary, opportunities to Six x-clear will collaborate to offer a full clearing choice als towards a merger. learn and network by January 2012. The initiative to provide trading part- page9 ners with choice of clearing facility has been three years However, regulators are likely to separate clearing serv- in development. ices from the combined Deutsche Boerse and NYSE People moves Euronext entity over competition concerns. Meanwhile, Find out the latest hires, and who is get- “[Getting all the parties to agree] was a diplomatic a European Commission draft document is circulating ting promoted within the industry. minefield because there are so many vested interests in Brussels outlining rules that prevent member states involved, however, the horizontal model is the one that from blocking access of investment firms and market page10 readmore p2 Citi bags Sandalwood mandate UBS re-establishes Fund Services in UK Citi Global Transaction Services (GTS) has been selected to provide fund UBS Fund Services has announced it is re-establishing a business develop- of hedge funds administration and custody services to Sandalwood Se- ment presence in the UK and aims to position Fund Services Dublin as a curities. Citi GTS’s funds of hedge funds service includes fully automated multi-product and multi-jurisdiction hub. global order fulfillment, custody and cash management, workflow flexibility and transparency and back office services. readmore p2 readmore p2 Ten markets, ten cultures, one bank. XXXXX Ten Markets-annons 203x40.indd 1 2011-09-12 09.27 NewsInBrief Post trade model battle heats up The mandate includes trustee and custody rities traded on the RSE faster to transfer and Continued from page 1 services, fund administration, transfer and for- convert into cash than before,” wrote RSE. eign exchange solutions. operators to central counterparty and clearing The Rwanda Integrated Payment and Process- and settlement systems, according to Reuters. “In supporting [Nedgroup Investments with their ing System implement by the exchange, just “Access should be granted on the same “non- new Ucits fund], we’ll leverage our local mar- seven months in operation, is comprised of discriminatory” basis as for local users,” ket expertise as well as our global capabilities Real Time Gross Settlement (RTGS), the Au- across Securities Funds and Services in order tomated Clearing House (ACH), the Automated And just as exchanges are consolidating to to create a tailored program,” said Richard Er- Transfer System (ATS) and the Central Securi- compete in the global market place, so too are nesti, global head of investor client sales man- ties Depository (CSD). CCPs expected to follow suit. agement at Citi. Before the new settlement cycle was adopted “In Europe we have currently over 10 CCPs and BNP Paribas tops fund in August, equities took five days and bonds we expect the number to get smaller, not big- took three days to settle. ger,” she says. administration survey Penson merges FCM and Citi bags Sandalwood mandate BNP Paribas shot up from last to first place re- Continued from page 1 flecting a major shift in the way clients view fund BD business accounting services, according to this year’s “After a thorough review of service providers, R&M Consultants Fund Accounting Survey. Penson Worldwide has announced the suc- two of the key factors driving our decision to cessful integration of its broker-dealer and US J.P. Morgan also saw a dramatic increase, end- select Citi were the quality of the professionals futures businesses, which will combine the ing in second place when last year it was in the we met and Citi’s commitment to developing operations of Dallas-based Penson Financial second to last position. technology solutions” said Ken Chapple, CFO Services and Chicago-based Penson futures. at Sandalwood Securities. “This year’s results reflect a remarkable sea This will facilitate more efficient use of capital change in the way the leading banks with fund “Transparency is a key commitment we make to and increased operating efficiencies. No other accounting services are viewed by their clients,” our investors and their advisors. Citi’s investor changes in management, marketing, resources said Richard Hogsflesh, managing director of services platform – and integrated Fund of Fund or offices are contemplated, the firm said. R&M Consultants. “The changes seem to re- Solution – provides us with direct, Web-based flect concerns in handling of derivatives and the The move is part of a major strategy review access to our investor reporting and portfolios banks which have performed best are outshin- announced after disappointing earnings in the and, as a result, additional transparency to our ing their rivals in this area of expertise.” second quarter. processes,” he adds. Other key changes expected include the sale UBS re-establishes Fund All other participants saw their scores decline, of one of Penson’s UK operations and the HSBC was third, and State Street and Northern expansion of its outsourcing agreement with Services in UK Trust followed in the top five. Broadridge in Canada. Continued from page 1 Rwanda’s modernisation To lead this effort, Gavin Byrnes has been hired HSS launches escrow services to focus on sales activity in the area of alternative paying off for exchange in Vietnam asset administration as well as Irish domiciled in- vestment vehicles as part of UBS’s Global Asset After modernising its payment and settlement HSBC Securities Services (HSS) has launched Management business group based in London. system, The Rwanda Stock Exchange (RSE) has escrow services in Vietnam to support corpora- reached another milestone when the country’s tions and institutions making inbound and out- This announcement follows UBS’s launch largest commercial bank listed on the exchange. bound investments in the country. of new Fund Services offices in the Asia- Pacific region. “These are exciting moments not just for the As long term capital inflows from foreign enti- Byrnes will co-operate closely with UBS’s Bank of Kigali but most importantly for the ties into Vietnam are increasing, there are a business development and client relationship young stock exchange as participation as an growing number of transactions that require an management locations in Dublin, Luxembourg, investor is quick and straight forward, not mate- escrow agent to facilitate the settlement of the Americas, Switzerland and Hong Kong and also rially different than what you would expect from underlying transaction whilst protecting the in- help to promote UBS’s global integrated offer- London, Singapore or New York,” said Bank of terests of both buyers and sellers. ing by leveraging cross-selling opportunities in Kigali chairman, Lado Gurgenidze. HSBC in Vietnam can now support a wide prime brokerage and asset Servicing. This second domestic listing on the nascent range of commercial transactions that need Byrnes previously headed sales and product market comes after the move to two day settle- cash to be held in escrow for corporate and in- development at SEB Fund Services in Luxem- ment on shares or bonds, made possible by the stitutional clients seeking to make investments bourg, a role he held since 2007. implementation of the Rwanda Integrated Pay- in Vietnam and Vietnamese companies seek- ment and Processing System (RIPPS) by the ing investments from foreign partners or those Nedgroup appoints Citi for TS Central Bank of Rwanda. seeking to make investments overseas. Citi has announced its Global Transaction Serv- “The effect of this development will be to make “Given the increasing investment activity in Vi- ices unit is selected by Nedgroup Investments the securities market more efficient by increas- etnam, HSBC is pleased to have launched es- for the manager’s new Irish Ucits fund. ing transaction speed thereby making the secu- crow services in this key market to help clients 2 www.assetservicingtimes.com NewsInBrief NewsInBrief mitigate transaction risk. This new service fur- State Street launches deriva- ket funds and exchange traded funds and State ther strengthens HSBC’s position as a leading Street Global Services provides asset owners provider of securities services in Vietnam,” says tives clearing service and managers with a wide range of support, from Vinith Rao, HSS head in Vietnam.