JPMorgan picks HSBC, StanChart to run US$500 billion custody business in Hong Kong, Taiwan

JPMORGAN Chase has chosen HSBC and Standard Chartered to function its custody companies in Hong Kong and Taiwan, with belongings price greater than US$500 billion, a spokesperson for the US financial institution mentioned.

Reuters reported in December JPMorgan, the world’s third-largest world custodian, was set to outsource the operations of its native custody enterprise in Hong Kong and Taiwan with Citigroup, HSBC and StanChart within the race for the mandate.

The Wall Street financial institution has determined to outsource its native custodian in Hong Kong to HSBC and Taiwan to StanChart, the spokesperson mentioned. Financial particulars of the deal weren’t instantly recognized.

Totalled belongings below custody throughout the 2 North Asia markets stood at round US$520 billion in December, Reuters reported at the moment, citing a supply with data of the matter.

JPMorgan is aiming to finish the transition to the 2 banks earlier than the tip of this 12 months, in keeping with two separate sources with data of the matter, who declined to be named as they weren’t authorised to talk to the media.

Fiona Horsewill, world head of Securities Services at HSBC, mentioned the financial institution seemed ahead to being appointed by JPMorgan in its residence market of Hong Kong and additional deepening its relationship on this area.

Margaret Harwood-Jones, world head of Financing and Securities Services at StanChart, mentioned the financial institution is thrilled to increase its relationship with JPMorgan by means of this appointment in an vital Asian market.

The appointment by JPMorgan was first reported by Global Custodian on Wednesday.

Asset custodians maintain traders’ securities for safekeeping to stop them from being misplaced. They additionally handle transactions, and settlements to make sure consumer accounts’ compliance with tax and different laws.

JPMorgan gives each world and native custodian companies for purchasers in Hong Kong and Taiwan however has determined to withdraw from the native degree because the cost-income ratio has gone up amid a decline in belongings, two sources mentioned in December.

The financial institution in 2020 ceased to supply native custody companies for exterior purchasers in Australia whereas sustaining one of many largest world custodian operations out there. REUTERS