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making it the second largest custodian
in the country. The deal was completed
four months after the two banks signed
a memorandum of understanding in
November, with the intent to facilitate an
orderly transfer of the RBC client base to
Citi over a 12-24 month period.
˜ ˜ The European Securities and Markets
Authority (ESMA) has informally delayed
the application of the Securities Finance
Transactions Regulation (SFTR) by three
months due to the COVID-19 pandemic. The
EU’s securities markets regulator has said
it expects competent authorities not to
prioritise their supervisory actions towards
entities subject to reporting obligations as
until 13 July 2020.
˜ ˜ UniSuper, one of Australia’s largest
superannuation fund with AU$85 billion in
assets under management, has instructed
BNP Paribas Securities Services to
suspend its securities lending programme.
The decision from the super fund comes
as world markets face continued turmoil
from volatility and uncertainty from the
COVID-19 coronavirus. UniSuper said the
decision is aimed at curtailing the amount
of short selling that has been sparked by
the pandemic.
˜ ˜ The global securities services industry
recorded its first drop in revenues in
four years, as earnings from custody and
securities lending slumped. According to
industry research firm Coalition, global
securities services revenues fell by 3%
in 2019 to $36.2 billion, largely driven by
a 5% decline in custody revenues which
reached $18.5 billion. Meanwhile, revenues
from fund services was largely flat at $10
billion despite record highs in assets under
administration (AuA), and other business
lines including agency securities lending
fell 2% to $7.6 trillion.
˜ ˜ The US Department of Justice (DOJ)
has approached State Street with a
potential resolution to its civil and criminal
investigation into allegations that the
bank had purposefully overcharged clients.
The Boston-based custodian disclosed in
its annual report that the DOJ had outlined
a framework for a possible resolution into
their review in late January, and that it is
working on the groundwork for a potential
settlement.
˜ ˜ SS&C Technologies has extended
a valuable outsourcing mandate with
Ares Management, a global alternative
investment manager with $144 billion in
assets. With the extension of the middle-
and back-office outsourcing mandate, the
firms will collaborate on expanding the
relationship to include additional SS&C
products and services. This will include an
upgrade of Ares’ accounting functionality
with SS&C Geneva, enabling it to
standardise the back-office. The latest
enhancements to Geneva will also support
Ares’ data management infrastructure.
˜ ˜ Deutsche Bank will continue to deliver
integrated fund services solutions to
its clients across 12 markets in the Asia
Pacific region, using SimCorp Dimension,
following the renewal of an agreement
between the two firms. The agreement
comes at a time of accelerated growth in
the Asian asset management industry.
The platform provides automated end-
to-end transaction flow and reports
and allows for greater efficiency and
scalability.
˜ ˜ State Street has partnered with a
FinTech platform with a view to providing
high-net-worth investors and family
offices with access to private market
funds. The partnership with iCapital
Network will combine State Street’s
R O U N D - U P ]
registered transfer agency and private
market fund administration capabilities
with the platform’s technology and
distribution network to enhance the
offering and servicing of US registered
funds.
˜ ˜ UBS has agreed to sell a majority
stake in its fund distribution platform to
Clearstream, combining two businesses
which will have over $230 billion in assets
under administration. Clearstream will
pay just over $400 million to UBS for 51%
of the business. Upon completion of the
deal, the Deutsche Boerse-owned central
securities depository (CSD) will combine
UBS’s Fondcenter with its Fund Desk in
a bid to significantly bolster its global
offering.
˜ ˜ BNY Mellon has launched a new
suite of oversight and contingent net
asset value (NAV) calculation solutions in
partnership with FinTech firm Milestone
Group. The collaboration is the latest
example of BNY Mellon working with
external technology providers to bring
new solutions to market, after a suite of
alliances in 2019. The new NAV offerings
are designed to drive greater transparency,
efficiency and risk management for asset
managers and asset owners within its
fund administration offering, the global
custodian explained.
˜ ˜ Clearstream has teamed up with
two asset management firms and
the Luxembourg Stock Exchange to
launch FundsDLT, a decentralised
technology platform for the distribution
of funds. Through a joint Series A
investment alongside Credit Suisse
Asset Management and Natixis Asset
Management, the move will help
strengthen the FundsDLT platform and
accelerate its commercial development.
Spring 2020
globalcustodian.com
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