With assets worth more than $500 billion, JPMorgan Chase has chosen HSBC and Standard Chartered to run its custody businesses in Hong Kong and Taiwan, according to a U.S. bank spokesperson.
JPMorgan which is currently ranked as the third-largest global custodian announced in December that it will be outsourcing its local custody business operations in Taiwan and Hong Kong to Citigroup, HSBC, and StanChart in competition for the mandate.
The representative for the Wall Street Bank stated that the company has chosen to contract out the local custodianship in Taiwan to StanChart and in Hong Kong to HSBC. The deal’s exact financials were not immediately revealed.
Laptops 1000In December the total assets under custody in the two North Asia markets were approximately $520 billion. JPMorgan plans to finish the transfer to the two banks by the end of this year.
HSBC’s global head of securities services, Fiona Horsewill, expressed the bank’s excitement about being appointed by JPMorgan in Hong Kong, its home market, and strengthening their partnership in this area.
StanChart’s global head of financing and securities services, Margaret Harwood-Jones, stated that the bank is excited to further its partnership with JPMorgan by appointing her in a significant Asian market.
Global Custodian broke the initial news of JPMorgan’s appointment on Wednesday. Securities owned by investors are kept safe and secure by asset custodians. To guarantee that client accounts comply with tax and other requirements, they also oversee transactions and settlements.
JPMorgan offered clients in Taiwan and Hong Kong both local and global custodian services, but the company opted to leave the local market as the cost-income ratio increased in tandem with a drop in assets.
While continuing to run one of the biggest worldwide custodian operations in the industry, the bank stopped providing local custody services for external clients in Australia in 2020.
