State Street and Nedcor Bank formed their alliance in 1998 to supply integrated global and domestic investment services, including custody, investment accounting, performance and analytics and securities lending. Today, assets under custody and administration have grown to ZAR460 billion.

Under the agreement, Euronext will use SWIFT's FIN and SWIFTNet messaging platforms, which connect a community of over 7,000 financial institutions globally, to expand its international client base and accelerate its time to market for new service offerings. The exchange will actively support initiatives enabling access to its core information systems NSC and Clearing 21 using the ISO 15022 message standard, simplifying the access model for its clients and enabling them to maximise their investment in the industry standard. Securities firms will be able to access Euronext services via SWIFT in the third quarter of next year.

Follow the Sun gives JPMIS clients continuous phone support through a rotating help desk that takes advantage of the bank’s regional service centre network in Dallas, Sydney, Tokyo, Singapore, Hong Kong and London. Follow the Sun callers conducting business after-hours in the US, for instance, may be supported by a customer service representative in Singapore. Local language experts are available if necessary.

The arrangement will encompass trading, clearing and settlement for both UK and non-UK securities traded on the Exchange, although it is anticipated that the agreement will initially focus on SETS trades flowing through LCH prior to settling at Euroclear. Securities transfers and realignment with CRESTCo would be a seamless process due to the link already in place between Euroclear and CRESTCo. Euroclear and LCH already have a similar arrangement for trades struck on virt-X, the Swiss/UK exchange.

"All three parties share a common vision for an integrated, low-cost capital market in Europe," said Clara Furse, LSE chief executive. "We are of the firm view that a relationship with Euroclear should make access to the Exchange more attractive for a larger number of non-UK member firms. We strongly believe that trading counterparties must have a choice in settlement location for their stock exchange trades. We also want to encourage transparent and fair competition, and horizontal consolidation among service providers."

Pierre Francotte, chief executive of Euroclear Bank, added: "We warmly welcome the London Stock Exchange's intention to offer its clients access to Euroclear, to complement the existing service already offered by CRESTCo to Exchange members. Euroclear's international reach and broad range of low-cost settlement, custody and collateral management services should be particularly attractive to firms seeking to centralise their activities across European markets. This should also make it possible for firms to reduce their transaction costs for cross-border settlement and to generate internal back-office savings."

Ian Ratoff, Head of UK institutional investors for KAS, said: ‘Launching into the UK has been a very exciting time for KAS and we are delighted that the Trustees of the Norwest Holst Group Staff Pension Scheme have chosen us to provide custodial services to their pension scheme. This mandate win supports our views that there is a real demand for custodians to service smaller and medium sized pension schemes which some players may ignore.’

Agricultural Bank of China is a full-scale commercial bank with business coverage going far beyond its agriculture-based origins, with significant work in the ongoing development of rural areas and rural infrastructure. ABC has a branch network of about 50,000 branches and sub-branches throughout the People’s Republic of China and five overseas offices covering Asia, the United States, and Europe. As of year-end 2000, ABC held aggregate assets of RMB 2,185 Billion (US$ 264 Billion).

Duncan MacKechnie, managing director of Direct Line, said: ‘We chose Mellon Trust for the simple reason that they had the capability to service all our requirements to a high specification from day one of our re-launch.’

The user feedback captured by the three main Global Custodian surveys - of the clients of global custodian banks, of agent banks in major markets and in developing markets - will now be combined with Thomas Murray’s proprietary research and analysis of over 250 custodian banks, 140 CSDs and 100 securities markets around the world. The Thomas Murray data will enrich the editorial and analytical content of the Global Custodian surveys by integrating into the surveys objective assessments of providers’ strengths and strategies, risk assessments and in-depth knowledge of local market infrastructures. Global Custodian surveys have until now relied almost exclusively on client perceptions.

• Electronic Transfer of Title (ETT)

At the point of transfer within CREST the transferee (buyer) will receive immediate and irrevocable legal title to the dematerialised securities. The CREST records will be the register for these dematerialised securities. This change removes the extremely remote risk that a buyer of stock might discover that his interest in the stock could not be registered after settlement.

• Payment in Central Bank Money

Each settlement in CREST is now accompanied by a simultaneous, final and irrevocable transfer of central bank money, in sterling or euros, between the payment bank acting for the buyer and the payment bank acting for the seller. This removes the theoretical risk to an investor arising from the failure of his counterparty's settlement bank. This project was a collaborative venture between CRESTCo and the Bank of England.

With a database of more than 2,500 institutional investment accounts and 160 investment managers across the country, BIA now claims to offer clients industry analysis and intelligence from the most extensive returns database in Canada. As part of BIA's strategy, the universes have also been equally weighted according to mandate and product, in order to ensure the consistency, integrity and overall value of the resulting data. The enhanced BIA universes replace those previously provided to RBC Global Services clients by the Canadian Trust Universe Comparison Service (CTUCS).

David Cross, Pensions Manager of BBA Group Trustees Ltd, added: ‘I was seeking a custodian that could centralise the current multi-provider arrangements we had in place. We were pleased to find that ABN AMRO Mellon could meet our needs. We look forward to a long and mutually profitable relationship.’

Stewart Copland comes in as a vice president and head of client relations for Europe. He joins from Mellon Europe where he was head of new business for their fund administration business. Prior to Mellon, Stewart held senior posts in the investment management consulting sector with KPMG and PWC over a 10-year period.

Both Simon and Stewart report to Tony Johnson, executive vice president of Europe who joined BISYS in March having spent 5 years at Royal Trust as managing director, sales & relationship management for Europe.

Richard Hale, a vice president in sales, joined BISYS in London in July, having spent 3 years at Royal Trust where he was director, business development in continental Europe.

Marziniak will join GSTP AG on 1 January 2002. His move coincides with the scheduled launch of GSTP live production. He will succeed Steve Crosby, a managing director at KPMG Consulting, who has served as acting CEO of the utility since its formation in 2000, and who will remain actively involved as special adviser to the GSTP AG board.

Burkhard Gutzeit, Chairman of the GSTP AG Supervisory Board, said: ‘We are delighted to welcome Jürgen Marziniak as new CEO of GSTP AG. He joins us at a challenging time. We are meeting our current objectives and timelines and are confident about the prospects for the company in the marketplace. Jürgen Marziniak's appointment marks our transition from a development effort into a fully-fledged operating company ready to serve the needs of the global securities industry. I am especially happy to have reached a friendly transition agreement with Deutsche Bank.’

Jack Klinck, executive vice president and head of corporate strategy and development, will move to London as head of Mellon Europe. While reporting directly to Mellon chairman and chief executive officer Marty McGuinn in that role, Klinck also will be taking on a newly established role as executive director of Mellon Global Securities Services (GSS) International, responsible for the custody and fund administration businesses outside of North America, including ABN AMRO Mellon and Mellon Fund Administration. He will report to Jim Palermo, head of GSS, in that capacity.

Klinck joined Mellon in 1997 as head of its credit card and affinity financial services unit, and was named to his current position soon after Mellon divested its credit card portfolio in 1999. As head of corporate strategy and development, he has been responsible for the bank’s long-term growth plan, including oversight of the acquisition and divestiture process. He is leading the transaction involving the sale of Mellon’s retail banking business to Citizens Financial Group, a subsidiary of The Royal Bank of Scotland, as well as a number of asset servicing and asset management acquisitions.

Jon Groom, currently head of Mellon Europe, will return to New York where he will continue to lead Mellon Global Investments, Mellon’s umbrella organisation for non-US asset management. He will take on the additional role of leading the development of the alternative investments strategy for Mellon’s asset management business globally, as well as responsibility for non-US asset management acquisitions. Groom will continue to report to Ronald P. O’Hanley, Mellon vice chairman.

Groom has been responsible for the Corporation’s non-US asset management businesses, including global distribution for Mellon’s US subsidiaries, since joining Mellon in January 2000.

Richard Godfrey has been appointed managing director of Mellon Fund Administration. Godfrey joined MFA in 1999 with responsibility for strategy and projects. Since then he has successfully led a number of strategic initiatives, including the launch of Mellon’s defined contribution pensions offering, e-commerce, and funds supermarkets. Godfrey will report to Klinck.

Steve Blizzard has been appointed director of European strategy and development for the asset servicing businesses. Blizzard’s appointment marks Mellon’s increasing focus on growth in Europe. He will be responsible for supporting the development of corporate strategy and acquisitions across these lines of business. Blizzard will have a dual reporting role to Klinck and Bruno Bonacchi, who recently was named head of corporate strategy and development for Mellon.

The changes in responsibilities will become effective on November 15.

‘The changes we now have under way, while prerequisites for both straight-through processing and T+1, are much broader in scope and offer a number of benefits to the industry even without T+1 implementation,’ said Dennis Dirks, DTCC’s chief operating officer. ‘Consequently, we intend to push ahead and adhere as much as possible to the schedule we originally established.’

Dirks said all the changes planned for the next two years will help to simplify and streamline industry practices both in the United States and internationally, promote global interoperability, provide better risk management, move toward common standards and adopt best practices.

‘We believe it would be a mistake for us not to continue to make progress on our objectives to change our technology applications as quickly as we can,’ Dirks added. ‘The benefits will be available to any firm ready to take advantage of them, whenever they are ready, and we’ll have the benefits of additional testing time before T+1. We have already made significant progress toward those goals, and these are already providing major benefits to our participants.’

The report sets out 19 recommendations that define minimum standards for securities settlement systems. The recommendations are designed to cover systems for all types of securities, including securities issued in both industrialised and developing countries, and to cover domestic as well as cross-border trades.

The recommendations were developed by the Task Force on Securities Settlement Systems, established in 1999 by the CPSS and the Technical Committee of IOSCO. The Task Force comprises 28 central bankers and securities regulators from 18 countries and regions and from the European Union. In January 2001 the CPSS and the Technical Committee of IOSCO released a consultative report for public comment. Nearly 90 comments were received from a wide variety of interested parties, mostly from Europe, but also from Asia, Africa and the Americas. As a result of these comments, several recommendations were changed significantly and a new recommendation on cross-border links between settlement systems was added.

Purvis, who joined IFDS in September 1997, will be responsible for product development around the collective investment product aspects of IFDS services, such as pension and fund supermarkets. IFDS is a joint venture between State Street and DST Systems Inc.

The objective of the scripted phase is for participants to demonstrate that they can interoperate effectively with counterparties via the TFM to match trades and settlement details and internally process such information. During this phase, operations at pilot institutions are set up. This includes systems, staff and work procedures. Once completed successfully, the scripted testing phase will be followed by the parallel run before live production.

Douglas will be joining forces with another new appointment in Europe, Brian Wilkinson, who becomes head of Global Fund Services in Dublin. Wilkinson joins from Fortis Fund Services in Ireland, where he was managing director, head of global marketing and a member of Fortis’s Global Fund Services management team.

State Street will service the business from its St. Louis office. State Street has more than 1,000 employees providing institutional trust and custody from its offices in St. Louis and Kansas City.

JPMorgan TradeS.T.A.R.R. is a web-based application designed to help asset management and brokerage firms reduce operational risk and the cost of failed trades. The product uses a series of 10 metrics based on data from JPMorgan’s global trade settlements database to measure, analyse and statistically rank settlement efficiency among broker dealers, within and across markets. Users will be able to rank and review broker performance based on aggregated settlement data in single and multiple markets and provide asset managers and broker dealers with information that should help to mitigate the risks and costs associated with failed trades.

JPMorgan TradeS.T.A.R.R. allows users to:

• View comprehensive and detailed assessment of settlement performance by various broker relationships.
• Rank and review broker trade settlement performance based on aggregated trade settlement data by market and by broker.
• Assess trade settlement statistics and risk exposures across time periods – by transaction, payment indicator and security type, using various base currencies.
• Benchmark broker settlement performance within JPMorgan Investor Services’ overall trade settlement activity base.
• Manage counter-party risk and reduce costs.

The GSFA, a new Crown entity, assumed management and administration of the Government Superannuation Fund and its schemes earlier this month. Finance Minister Dr Michael Cullen said the move would improve the funds investment income and reduce the annual cost of financing the fund's benefits without incurring undue risk.

Among the mandates won include the funds launched by Macquarie-IMM Investment Management Co. Ltd, an Australia-Korea joint venture asset management company, and SEI Asset Korea, a local mutual fund company comprising US-based SEI Investment Company, IFC and TongYang Securities.

Craig Warren, senior vice president at Bank of Hawaii, said: ‘We were impressed with The Bank of New York’s clear commitment to the mutual fund market, its technology-based services and its reputation for quality client service.’

ChevronTexaco’s general manger of benefit plan investments, David P. Smay, said: ‘We have chosen JPMorgan Investor Services as our new custodian following a strategic review that revealed the high-level of professional knowledge and insight that we feel is essential to servicing our employee pension plans. JPMorgan has the type of global custody platform we need and a very robust web-based electronic information system for obtaining current asset values and performance data.’

The Bank of New York will hold approximately US$6.25 billion worth of Citigroup stock in connection with the tender offer to swap Citigroup shares for those of Banacci. This transaction is the largest private sector US custody transaction undertaken in Mexico, and represents the first time a US corporation’s shares have been traded on the Mexican stock exchange.

Under the plan, as soon as trade agreement is reached between counterparties via electronic trade confirmation or central matching, Omgeo would send settlement instructions directly to CREST as well as to the settling parties to the transaction. CREST would set-up the instructions for settlement without the need for direct input by either settling party. The partners claim that the new process would bring major efficiencies to the markets, and lead to a substantial reduction in costs of settling trades for brokers, custodians and their clients. They also say that the approach is fully consistent with CREST's new arrangements for netting market-side transactions during 2002 and resembles Omgeo's existing relationship with The Depository Trust & Clearing Corporation for processing and settling US securities.

The plan can be downloaded from www.crestco.co.uk or www.omgeo.com, and comments should be submitted by the end of November.

Prior to this new development, the FRBNY did not permit any party other than the owner of securities to give instructions on an account. This made lending out of those accounts more difficult due to time zone and time frame considerations.

Cathay Life, headquartered in Taipei, had assets in excess of NTD 1,038.6 billion (US $31.5 billion) as of year-end 2000. It provides individual and group life insurance, as well as accident and health insurance to more than 7.2 million policyholders, one-third of the citizens of Taiwan.

The SIA emphasised that many of the milestones identified by in the May 2001 T+1 project analysis are expected to be completed on schedule. The new target date means that securities firms must be ready by mid-2004 so that they can participate in a full year of utilising the new processing infrastructure and industry testing as envisioned in the original plan.

The SG/Mellon partnership will service companies with overseas employees, acting as a single administrator for shareholder and employee share option plans across multiple locations. The partnership will draw on each of the partners’ local expertise in employee plan administration, share registry services, taxation, brokerage services and other related equity services.

European employees of US companies will have their programs handled by SG in Europe. Similarly, Mellon will administer the share programs for US employees of European companies. At the same time, SG and Mellon will continue to manage the global employee stock programs of European and US corporate issuers respectively. Communications links between SG and Mellon systems will enable a single consolidated view of clients’ global employee stock programs. Employees will benefit from the services of a local provider in the local time zone (for example, European employees will use the call centre of SG, which has six language capabilities). Joint activities will include the development of shared marketing tools, client calling programmes, call centres and internet reporting technology.

Bob Mather, director of corporate finance and deputy chief executive at Cumbria, said: ‘Deutsche Bank was able to support all of our business needs. It looks at how its products benefit customers rather than how good its products are in isolation. This, combined with Deutsche’s experience and professionalism provided the customer focus that we liked.’

Crépin will be responsible for formulating and implementing Deutsche Bank’s sales effort for GSS products and services in Italy, including global, regional, direct and multi-direct custody services, offshore and onshore fund services and securities lending to the full financial institution client base. Crépin will be based in Milan and will report to Christian Vogels, Head of Deutsche Bank’s GSS Customer Management for Western Europe. He spent the last three years with JP Morgan Investor Services where he focused on Continental European sales. Previously, he was a senior government bond trader, most recently at Salomon Smith Barney in London.

Under the agreement, State Street will act as master record-keeper for all of ACE's invested assets around the globe. Using a common platform, State Street will provide US and Canadian regulatory reporting, GAAP and tax accounting, performance and analytics services as well as compliance monitoring services for ACE investment managers. State Street will also provide securities lending and cash collateral reinvestment services. ACE will use SL PerformanceAnalyzer, a proprietary State Street product designed to monitor and assess the relationship between risk and return in securities lending. State Street Global Advisors (SSgA), the investment management arm of State Street, will provide cash collateral reinvestment services. State Street will use the systems of its wholly-owned subsidiary, Princeton Financial Systems, to meet ACE's insurance regulatory reporting requirements.

These new services enable clients using traditional or electronic price discovery methods to utilise iFX Manager’s order management system’s added capability to generate two different types of post-trade messages in electronic format. These two types, known as execution notification and allocation notification messaging, contain details of trade execution needed by custodians, fund accountants and plan sponsors, as well as counterparties other than BNY. The iFX Manager Messaging Services use both the SWIFT network and the system’s autofax and e-mail capabilities to notify message recipients on behalf of clients.

The new venture's senior management team consists of Cormac Kelly and Kurt Vandenberg from Capco, who will be chief executive officer and chief technology officer respectively, and Martin Haines and Jonathan Steinberg from Reuters, who will be chief marketing officer and chief financial officer respectively.

European SPDRs will be exchange-traded securities designed to track the performance of the S&P Europe 350 stock indices and be traded as a single investment portfolio in the same way as shares of any listed company. The Bank of New York administers over 40% of all exchange traded funds world-wide, and services nine of the fifteen largest exchange traded products on the market today.

Whitehouse will be replacing Des Joyner, who is retiring from the end of this year after 37 years with the bank. Joyner will continue to advise and represent DrKW on various industry wide operational infrastructure initiatives.

The estimated impact of the disaster reflects certain additional costs associated with the disabling of two of its facilities close to the World Trade Center, full outfitting of contingency locations and associated infrastructure links, reoccupying its headquarters building at One Wall Street, and other expenses, including overtime, outside vendors, and extra security. In addition, BNY experienced a reduction of revenues in the quarter due to the temporary closure of the markets and higher than normal levels of excess liquidity resulting from the disruption of the markets and payment processing. BNY believes that a substantial portion of the impact of the disaster is covered under its insurance policies. These insurance recoveries are expected to be recorded in future quarters.

Drachman will immediately focus on overseeing the implementation of the securities lending platform, building an executive management team, and planning for the development of EquiLend's participant base. As part of its mission to streamline the business process and increase efficiencies, EquiLend will form subsidiaries to deliver to participants four key components in its first phase: availability, autoborrow, one-to-one negotiations, and contract, billing and marks comparisons. EquiLend's platform will also be designed to provide the industry with a set of objective index-level benchmarks. The first phase of functionality is expected to be rolled out to members and subscribing participants by the first half of 2002, following receipt of applicable regulatory approvals.

Drachman joins EquiLend from PricewaterhouseCoopers where he was a director of management consulting services for the financial services industry, responsible for providing strategic and tactical IT solutions in the areas of risk management, trading, and operations for fixed income, derivatives and equities products. He also held a number of positions during thirteen years at Merrill Lynch.

Firms electing to outsource would license software from Thomson Financial, and then choose from a menu of AMTS services, such as facilities management, application hosting, database maintenance, data feed management, security master file updating and reconciliations to custodial banks. While firms contract directly with AMTS for outsourced services, Thomson Financial manages the joint client relationships through its relationship management and customer care organisations.

In 1994, AIB and The Bank of New York established their first joint venture company in Dublin, AIB/BNY Fund Management, to provide fund administration, fund accounting and transfer agency services to collective investment schemes. It now employs over 200 staff in Dublin’s IFSC and is one of the fastest growing of the major fund administrators in Dublin with investments under administration exceeding US$50bn.

CLS Bank is supported by 67 of the world’s largest financial groups, accounting for a substantial majority of foreign exchange trading worldwide. If it ever comes to fruition, the CLS settlement service will eliminate the time risk in cross currency payment instruction settlement. CLS Bank will initially settle in seven currencies, the US dollar, Australian dollar, Canadian dollar, UK sterling, Japanese Yen, Swiss Francs and the Euro.

ABN AMRO Mellon replaces three incumbent custodians, and takes on the role of master custodian, providing consolidated reporting across the plan’s assets.

Simon Lee, Deputy Finance Manager of Marconi Pensions, said: ‘We are delighted to have selected ABN AMRO Mellon as the global custodian for the GEC 1972 Plan. Of the custodians which we considered, ABN AMRO Mellon best matched our requirements and we look forward to them demonstrating the range and quality of services which they can provide for the protection and benefit of the plan and its membership.’

DG BANK Luxembourg S.A. has appointed it as sub-custodian in Japan, bringing to six the number of markets in which Standard Chartered is their sub-custodian. The other markets are Hong Kong, India, Singapore, Taiwan and Thailand. DG BANK Luxembourg S.A. is a specialist in the investment fund business, with clients that include asset managers, fund promoters and life insurers. It provides institutional clients with a comprehensive range of strategic solutions and services that include advisory services, fund administration and custody.

Nordea has consolidated its entire Japanese portfolio with Standard Chartered. Nordea is the largest financial services group in the Nordic region. It came into being with the consolidation of four of the region’s leading banks, namely, Christiania Bank og Kreditkasse, Merita Bank, Nordbanken and Unibank.

Nordea’s Head of Network Management, Joakim Gustafson, said: ‘Standard Chartered is Nordea’s natural choice of partner in Japan. They have a top-class product and a first-rate team that provides excellent service. That Nordea has appointed Standard Chartered our subcustodian for the whole Group in Japan is a statement that we regard them as the best provider in this market.’

Union Bank of Norway has appointed Standard Chartered as its regional custodian in Hong Kong, Singapore, Japan and Thailand. Union Bank of Norway is the largest savings bank in Norway.

Headquartered in London, EuroCCP has been created to deliver a cross-border clearing and settlement solution for transactions executed on Nasdaq Europe in both European and US securities. EuroCCP will provide trade guarantee and netting services.

Jim Weber, chief operating officer of Nasdaq Europe said, ‘This is an important step in the development of Europe’s equity markets. Through EuroCCP, Nasdaq Europe will be able to offer a streamlined clearing and settlement solution, designed in conjunction with market participants, which will significantly reduce the operational costs, inefficiencies and risk associated with cross-border transactions.’

Meanwhile Mellon Financial Corporation is assisting in a number of national and local relief efforts through a series of contributions. This effort includes a $100,000 donation to The September 11th Fund, established by the United Way and The New York Community Trust to deploy assistance to emergency support agencies and victims' families, and $50,000 to the American Red Cross National Disaster Relief Fund to aid its rescue relief and recovery efforts. Mellon has also established a special $50,000 gift matching program to match individual employee contributions of up to $500 to recognised non-profit organisations providing relief. Another $100,000 has been earmarked by Mellon to support local and other emergency support activities.

At the moment, when US participants settle these transactions, there is a separation between the settlement of the securities, which occurs in the local market, and the payment, which takes place in the US in dollars. With this new solution, Citibank’s Hong Kong branch will hold the shares on behalf of The Depository Trust Company (DTC), a subsidiary of DTCC. Participants will then be able to move shares from their current overseas location into DTC’s account at Citibank. Once the position is on DTC’s books, the participant will be able to settle trades by book-entry DvP.

‘This initiative in Hong Kong is a major step forward in DTCC’s international strategy,’ said Jeffrey H Smith, managing director of DTCC International Services. ‘For the first time, we’ll be able to extend the benefits of our infrastructure to help our customers settle these foreign equity trades as quickly, easily and efficiently as US equities. This is the first of many agreements we plan to strike in overseas markets to optimise the settlement of foreign ordinaries for our customers.’

Eagle's principal products are Eagle STAR, a Web-based global investment accounting system, and Eagle PACE, a Web-based investment data hub and portfolio management system. Founded in 1989, Eagle currently employs more than 200 software engineers, business analysts and sales and marketing professionals, and supplies Web-based investment management software solutions to a number of major US money managers, plan sponsors, banks, corporate trusts, hedge funds and mutual funds.

Schroders was awarded a license to establish a local investment subsidiary in Korea in July, and is the first foreign asset management company to be awarded such a license, allowing it to launch and manage investment trusts available to local investors. The wholly-owned local subsidiary, Schroders Korea Limited, aims to launch its first locally managed funds in September 2001. Schroders’ investment in Korean equities amounted to $2.1 billion as at the end of 2000.

Citibank Korea is the first foreign bank to offer trustee and custody services to unit trusts in Korea, having obtained a trustee license from the Ministry of Finance and Economy in 1997.

Rogers has been executive vice president since 1993, and has had responsibility for the operating areas since 1990. Prior to the company's 1990 acquisition of the financial products services division of Bank of New England,  Rogers was vice president at the Bank of New England.

Investors also announced that Karen C Keenan, senior vice president and chief financial officer, will retire in January 2002 to spend more time with her family. John Spinney, currently a partner at KPMG LLP, will be Keenan's successor. Spinney has 14 years’ experience at KPMG working with financial services clients, most recently as an audit partner in KPMG's Boston office. Spinney's audit and tax clients include mutual funds, investment advisors, transfer agents, custodians and trust companies.

Hiard is well-known in the securities lending industry, having co-founded London Global Securities in 1990, the UK’s first independent securities lending intermediary, and was a former head of Salomon Brothers’ stock lending business from 1987 to 1990. From 1997 to 2000 Hiard was managing director of Donaldson, Lufkin & Jenrette’s securities lending organisation following their acquisition of London Global. For the past year he has been a management consultant at Franklin, Williams & Foy Ltd., a venture capital and consulting firm where he was responsible for the funding and investment side of the business.

‘We hired Mellon when we were an $8 billion plan, and they have met each and every challenge we have placed before them during a period of significant change and growth for us,’ said Nancy Everett, chief investment officer of the Virginia State Retirement System. ‘They are a client-focused organisation that places service excellence as the priority. The calibre of their staff is unequalled in the industry.’

In addition to the Sigma appointment, Royal Trust has been awarded global custody mandates for two major North American companies:

Canadian-based Bombardier Inc.—a leader in aerospace, recreational products, transportation, financial and real estate services—recently appointed Royal Trust as global custodian for CAN$2.8 billion in global assets. Royal Trust will provide global custody and securities lending services.

Multi-state financial services provider, Comerica Bank in Detroit, Michigan has awarded Royal Trust a global custody mandate to service 28 world markets for assets under administration of CAN$1 billion.

The two shareholders plan for NikkoCiti Trust and Banking Corporation to be managed as a joint venture focused principally on the trustee administration and custody business in Japan. The company plans to purchase the trustee administration and custody business currently conducted in Japan by Cititrust. NikkoCiti Trust and Banking Corporation will provide trustee, administration and custodial services to a broad range of institutional investors, specifically public funds, pension funds, investment trust managers and the fund manager community. The total assets under administration of NikkoCiti Trust and Banking Corporation will be approximately seven trillion Japanese Yen.

The first trade for participant integration testing was completed by TD Asset Management as investment manager, and Morgan Stanley as broker/dealer. The two companies matched a basic equity trade in the TFM at all levels using the axion4 single-user workstation. The pilot integration testing phase began on schedule in July, with more than two dozen firms actively involved.

Russell/Mellon Analytical Services is a joint venture between Mellon Financial Corporation and the Frank Russell Company. Russell/Mellon's client base exceeds $2.5 trillion in institutional assets, making the firm the largest global provider of performance, attribution, universe and risk and compliance monitoring services.

Anyway, on to business. Marcel Massing has joined the ABN AMRO Mellon sales team as part of its Amsterdam-based sales force. Joining from Euroclear’s Brussels headquarters where he worked for seven years, Massing’s previous responsibilities covered sales and relationship management in various markets including Switzerland, Liechtenstein, the Nordic Region and Central & Eastern Europe. Massing will focus on building the joint venture’s market share in the Netherlands.

After only a year at HSBC Global Investor Services, where he was deputy head of corporate trust, Dean Handley has joined the joint venture’s London-based sales team. Prior to working at HSBC, Handley spent 10 years at Bankers Trust in a variety of roles. Handley will focus on building the joint venture’s market share in the UK Pension Fund market.

Meanwhile, at Mellon Trust there have been three senior European appointments:

As head of fund accounting, David Dobinson will oversee the fund accounting operations and ensure that client service levels are maintained at a consistently high level. He joined from United Assurance where he was Investment Operations Manager. During his time there, he lead significant back-office merger projects, enhanced IT networks and managed the doubling of funds under administration.

Andy Tamlyn joins Mellon Trust as head of DC pensions operations. He has responsibility for the day-to-day operations of Mellon’s defined contribution pensions business, including stakeholder. Mellon launched this business on 6h April 2001, after announcing its first client, Nationwide Building Society. Tamlyn joined from BISYS, the US-based fund services group, where he was operations director. He had previously spent 25 years with Prudential, where his last position was operations director of its collective investments business.

John Maguire has been appointed chief operating officer in Dublin, and he has day-to-day responsibility for the offshore fund accounting and transfer agency businesses administered in Ireland. He is a commerce graduate of University College Dublin and has held management positions in the security services areas of Allied Irish Banks, Bank of Ireland and Ulster Bank, prior to his last role as general manager of Clydesdale trustee & custodial services.

Finally, Mellon Trust has been awarded an Investors in People plaque for fund administration in London and Brentwood. It is planned that other Mellon Trust business areas will apply for IIP status in the near future.

The Principal Financial Group has $113 billion in assets under management and serves some 13 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States.

In 1993, Northern Trust was selected by The Nobel Foundation as custodian for one portfolio and for a second in 1998. These two portfolios today total approximately SEK617 million. In 2000, The Nobel Foundation sought to upgrade their whole service offering to a global arrangement and issued an RFP with the intent of consolidating all of their assets with one provider. Northern Trust was selected, and The Nobel Foundation moved the remainder of the assets in June.

CIBC Mellon Trust Company, a sister company to CIBC Mellon Global Securities Services, is also the transfer agent for both Air Canada and Canadian Airlines.

Janet Chrzan, CFO of Lincoln National Life, commented: ‘The Bank of New York’s expertise in providing securities services and its commitment to the insurance industry were key factors in selecting it as our custodian and securities lending agent. Given the continuing trend of banking industry consolidation, we wanted to ensure that our partner was dedicated to the insurance industry and would allocate resources to developing the technology infrastructure and sophisticated custody products.’

No evidence was brought forward in the money laundering and related investigations as reported by the Luxembourg judicial authorities on 9th July . However, that is not the end of the story as investigations continue on some other matters, including offshore payments to senior management.

The cash purchase price premium is expected to be approximately $2 billion, a 16% premium on deposits. Mellon expects to record a one-time gain of approximately $900 million in the fourth quarter of this year, when the transaction is expected to close, subject to regulatory approval.

Following the sale, fee income will comprise 85% of Mellon’s revenue base, and 67% of revenues will come from trust fees, strengthening Mellon’s number one position in trust fees among US trust banks. The additional capital resulting from the sale will be used to invest in Mellon’s fee businesses, including acquisitions that enhance those business lines, and to repurchase Mellon shares.

‘Although many market participants recognised the validity for Europe of a single market in financial services (and indeed in most cases saw a central role within it for themselves), there are also many profound obstacles of law, regulation, technology, national and commercial interest, and frankly cost, which make immediate progress towards a single EuroCCP unlikely. The move by some trading platforms to public flotation, dependent in part on income streams from clearing and/or settlement services, has raised the stakes, and at the same time the barriers to a single EuroCCP.

‘We concluded at a meeting of our EuroCCP Working Group on 28^th June 2001 that there was no immediate prospect of moving towards our preferred model of a single, pan-European entity providing netting, central counterparty and clearing services.

‘Although the conclusion we were forced to draw does not advance the prospects of achieving the target, as agreed by the Governments of the EU, of a single market in financial services by 2005 or earlier, the ESF has however been greatly encouraged by the widespread recognition of the necessity for Europe of a single efficient capital market. As the Wise Men said in their Report of last February: "Unless there is profound change and reform there is no chance whatsoever the Financial Services Action Plan will be delivered on time. This would be serious – politically and economically".’

Citibank was voted best global custodian in all jurisdictions in Asia Pacific: Japan, Australia/New Zealand, and Asia ex-Japan and Australasia. In addition to the Asiamoney honours, Citibank was also named ‘Best at Transaction Services’ in Asia by Euromoney magazine. This award comprised the bank’s custody, cash and trade offerings.

The appointment follows Royal London’s takeover of United Friendly in November of last year, and subsequent trust consolidation project. Prior to that Deutsche Bank acted for nine United Friendly trusts, worth approximately £1.4 billion, through Bankers Trustee Company Ltd. State Street was the other supplier.

Global Depository Reviews is a searchable CD-ROM database containing in-depth information on the structure, practices and historical development of more than 100 major depository institutions around the world. JPMorgan used a proprietary methodology to assess the depositories’ core competency areas for asset safekeeping and then rated each against global best practices.

db perform will be available to clients directly or through Deutsche Bank's new web-based platform, db portfolio. Via db portfolio, the bank's institutional clients have access to their custody and accounting data, and can use an array of applications, including compliance monitoring, securities lending, and risk analytics.

The final phase of the 'RGV 2' project was launched on 18 June 2001, its objective being to consolidate the different settlement options offered by Euroclear France under the umbrella of its Relit de Grande Vitesse (RGV) real-time settlement system. The project's first phase was launched in June 2000, with the admission of French investment funds (Sicavs) onto RGV.

The second phase also marked the closing of the Relit settlement system, which since 1990 has allowed settlement of French securities to take place on a delivery-versus-payment (DVP) basis, with improved security and by means of a standardised settlement cycle.

The new building is currently under development and Mellon will take occupation towards the end of 2003. Mellon has 2,000 staff in the UK. The Mellon operations to be housed in the group’s new European headquarters will include Mellon Global Investments, Mellon Bank N.A. London Branch, Mellon Trust, ABN AMRO Mellon Global Securities Services and Buck Consultants.

Investors enter their asset allocation and investment parameters into the calculator to obtain an estimate of securities lending income and risk. This assists users in establishing risk/return parameters and designing their collateral reinvestment portfolio. SL PerformanceCalculator combines securities lending average on-loan percentages and demand spreads from the Risk Management Association's (RMA) industry composite with collateral spreads and risk representative of State Street's proprietary collateral reinvestment funds.

Ben joins the newly formed UK team of Ian Ratoff, head of relationship management, institutional investors UK, (formerly global business development manager with HSBC) and Ben Kramer, currently head of acquisition and sales with responsibility for the institutional Benelux markets, who will roll out KAS’ custody product in the UK market.

The two components released are the Omgeo Central Trade Manager Message Specifications, a document that details how to configure messages to communicate effectively with the Central Trade Manager, and the Application Programming Interface, or API, a software toolset that allows Omgeo clients to link their internal systems to the Central Trade Manager. The two elements, working together, enable clients to update their internal applications and utilise the Omgeo Central Trade Manager.

Omgeo has also announced an agreement with Sun Microsystems, committing to the use of Sun's advanced, scaleable technology as the production basis for its global trade management workflow hub.

The new offering will be called the European Pre-Issuance Messaging (EPIM) service. It will be based on PIM, the Pre-Issuance Messaging service created by DTC, and introduced in the US in 1999. The enhanced European version of the system will link the organisations settling euro-commercial paper trades with dealers and issuing agents electronically and in standard messaging formats, allowing them to exchange ISIN codes and issuance information quickly.

The initiative has been endorsed by the European Commercial Paper Association, a trade group representing international banks and securities firms which promote international securities and the development of the euro-commercial paper market in Europe. EPIM is scheduled to be operational this fall.

Misson joins Citibank from BNP Paribas, where he managed their London office as UK global securities services location manager, as well as directing the global sales and relationship management function across all countries for the multi-direct custody and clearing business. His prior experience includes sales and relationship management for the broker-dealer businesses at Paribas and JP Morgan.

19JUN01: Bloomberg has signed up as a concentrator for the global straight through processing (GSTPA) solution. Bloomberg will be acting as a fixed income and equity concentrator and will be the first fixed income trading concentrator for the GSTPA solution. This will enable users of the Bloomberg Professional service to use their Bloomberg terminals to connect to the Transaction Flow Manager.

Earlier this year, ABP took a one third stake in State Street Global Alliance, LLC, a jointly-owned subsidiary that will focus on partnerships with innovative asset management firms. Last month ABP awarded a €50 billion European custody mandate to ABN AMRO Mellon.

Benjie Fraser, managing director, UK Sales, The Bank of New York, said: "This appointment is continuing evidence of an accelerating trend: investment accounting is rapidly becoming a core service to UK pension funds."

The Internet version of CDR provides all the features and benefits of CDR through a more accessible and portable medium, including:

• On-line notification of both mandatory and voluntary corporate actions
• Events details, including all the terms of the action
• On-line decision capability
• Mass decision and mass approval capability
• Customisation options to set preferences within the application

Laurens G. Vis, managing director, Institutional Banking, commented: "We have looked closely at the European pensions market over the last couple of years and identified a niche to expand our successful Dutch custodian model into the UK market, focusing on the small and medium sized pension funds, offering them a best practice service in the global market".

In March, Brazil's government approved new pension fund rules that will provide greater transparency by requiring portfolio data every month as well as performance data every six months. This will set limits on the amount that pension funds will be able to hold in fixed income, variable income and property and how much they can lend/finance their parent organisation. These changes will bring about a set of new controls that will promote an increased demand for investor services in the marketplace. Brazil's second largest private bank, have entered into an agreement for the two companies to identify and pursue opportunities to expand institutional investment services to each of their respective client bases. This will include multinational corporations, global investment managers, global insurance companies and pension funds.

In March, Brazil's government approved new pension fund rules that will provide greater transparency by requiring portfolio data every month as well as performance data every six months. This will set limits on the amount that pension funds will be able to hold in fixed income, variable income and property and how much they can lend/finance their parent organisation. These changes will bring about a set of new controls that will promote an increased demand for investor services in the marketplace. Brazil's second largest private bank, have entered into an agreement for the two companies to identify and pursue opportunities to expand institutional investment services to each of their respective client bases. This will include multinational corporations, global investment managers, global insurance companies and pension funds.

In March, Brazil's government approved new pension fund rules that will provide greater transparency by requiring portfolio data every month as well as performance data every six months. This will set limits on the amount that pension funds will be able to hold in fixed income, variable income and property and how much they can lend/finance their parent organisation. These changes will bring about a set of new controls that will promote an increased demand for investor services in the marketplace.

In addition to the BLOOMBERG Professional service, TradingLinx is accessible via Bloomberg's trade order management software packages, PTOMS (Portfolio Trade Order Management System) for the buy-side, and TOMS (Trade Order Management System) for the sell-side.

01JUN01: Deutsche Bank has been appointed as global custodian for the GBP556 million assets of the Clwyd Pension Fund, which is managed by Flintshire County Council.

Commenting on the decision, Councillor Ted Evans, Chair of the Investment Panel said: 'Deutsche Bank is able to support all of our business needs. We were impressed with its systems, its approach to minimising risk and reporting capabilities.'

Michel Laurent, Head of EIS at BNP Paribas Securities Services said, 'Such an experienced and dedicated professional is a welcome addition to our already strong team. Nadine’s proven client focus and drive will help us tremendously in our ambitious business expansion strategy in Europe.'

Maureen Ford, chairman and chief executive officer, John Hancock Funds, said, ‘Given our strong growth, it was imperative that we select a provider with the expertise and infrastructure to support our evolving service requirements. We chose The Bank of New York because of its integrated custody and fund accounting solution, its sustained focus on technological innovation and high quality of service. In addition, we decided to consolidate all of our custody business with one bank in order to realise significant cost savings, which in turn we will pass along to our mutual fund shareholders.’

John Hancock Funds, a wholly owned subsidiary of John Hancock Financial Services, Inc., manages more than US$30 billion in open-end funds, closed-end funds, private accounts, variable annuities and retirement plans for individual and institutional investors.

Total assets of Euroclear plc at year-end 2000 were €9,125.0 million, substantially above the €502.5 million reported in 1999. This is due to the transfer to Euroclear Bank on December 31, 2000 of all Euroclear-related assets and liabilities from Morgan Guaranty.

Ton Berendsen, ABP Investments’ COO, added: 'ABN AMRO Mellon passed our rigorous selection process. We expect the comprehensive added-value services they can provide to contribute to the maximisation of return on our assets.'

Under the terms of the agreement, DST will provide data processing support for PAS and State Street will hire approximately 85 employees of the business. PAS currently provides each client with essential data processing components to support automated investment accounting, including application processing, system support, maintenance and software development. Clients control data entry, operator access, transaction processing, and output production.

EquiLend's automated platform will provide the securities lending industry with the technology to streamline and automate transactions between borrowing and lending institutions and will introduce a set of common protocols. EquiLend will connect borrowers and lenders through a common, standards-based global equity lending platform enabling them to transact with increased efficiency and speed, and reduced cost and risk. EquiLend will also create a repository of data from members' transactions that can be used to produce a set of statistically significant and objective benchmarks for the industry. The founding institutions have committed equal contributions toward an aggregate capital investment of $40 million.

Through the EquiLend platform, a borrower or lender has the option to initiate an order to one or many counterparties, thus improving the efficiency of locating securities. When an offer is located and the terms are agreed, EquiLend will match the parties' settlement instructions and send a shared trade ticket to each of the participants' proprietary trading and settlement systems. EquiLend's automated platform will streamline manually intensive front and back-office activities throughout the transaction as well as reduce the number of failed trades in the settlement process. EquiLend is working with NerveWire, a management consulting and systems integration firm focused on inter-enterprise collaboration.

The affiliation of this strategic business line of the BNP Paribas Group is a large-scale operation that began in 2000 with the affiliation of securities services activities in Belgium, Germany, Greece and Spain. The process is a part of the re-organization of the BNP Paribas Group into separate operating entities.

‘The process will continue in the second half of 2001 with the affiliation of activities in the United Kingdom, Luxembourg and the United States. As BNP Paribas Securities Services’ European coverage expands, new branches will also be automatically lodged into this separate operating entity,’ said Jacques Philippe Marson, Head of BNP Paribas Securities Services.

The Board of Directors of Clearstream International announced today that André Lussi, President and CEO, has stepped aside temporarily from his responsibilities as President and CEO pending the outcome of a judicial investigation into allegations arising out of the book Revelation$.

Carlos Salvatori, Head of the Office of the President and CEO and Robert Massol, Managing Director and Chief Human Resources Officer have also stepped aside temporarily from their responsibilities pending the outcome of the judicial investigation.

These actions were taken to facilitate the expeditious completion of the investigation.

André Roelants, Chairman of the Executive Committee of Dexia/BIL and member of the Board of Directors of Clearstream International, has accepted the role of interim CEO.

Mr Roelants said: "We are co-operating in every way possible to ensure this investigation is completed as quickly and effectively as possible."

Read the new article on the Analysis page to find out what's really going on...

Introduced in June last year, Fund WorldView is a one-stop fund execution and custody solution enables financial institutions to meet client demand for third-party funds by providing comprehensive fund information, on-line ordering, and client-specific asset allocation tools.

This web-enabled product features access to, and extensive information on, over 300 funds from 24 fund families with no transaction fee, as well as additional individual listings for over 12,000 funds. There are up to 460 data elements for each fund, and robust, user-friendly search capabilities that allow the user to submit a query and analyse results.

State Street has more than 1,000 employees in Missouri and provides institutional trust and custody from its offices in St. Louis and Kansas City. The St. Louis office is the third regional office to open in the past year to service the middle market business. State Street opened offices in Winston-Salem, North Carolina and Atlanta, Georgia to service the institutional trust and custody business it acquired from Wachovia Corporation in October 1999.

Other upgrades are: Enhanced Workbench Client Reporting, with enhanced cash, custody and accounting reporting, and the introduction of a suite of performance measurement and investment analytics reports through Russell/Mellon Analytical Services; Global Securities Lending Reports, offering access to more than 40 Web-based reports on Workbench, including monthly client earnings, lending activity, borrower exposure, collateral received and reinvestment activity; and Benefits Disbursements Reference Information, offering clients a variety of benefit payment reports, check histories and stop-payment capabilities.

CREST also announced that, with immediate effect, it is reducing its tariffs for cross-border settlement in European markets by an average of 12%. This will benefit users of both virt-x, which goes live on 25 June 2001, and the London Stock Exchange’s International Retail Service (IRS) when trading commences on 30 April 2001.

With effect from 26 November 2001, CREST will take a major step towards the elimination of risk in securities markets by offering settlement in central bank money. This will be achieved by linking CREST with the Bank of England’s wholesale inter-bank payments system (RTGS). This will permit inter-bank payments arising from transactions in CREST to be immediately discharged in real-time through RTGS.

The goal of Encompys is to offer asset managers an efficient, affordable and risk averse alternative to building their own T+1-compliant systems or integrating separate components from various service providers. It will give asset managers universal online access to a single point of entry for all pre-trade, trade and post-trade activities.

The enterprise will combine the technology, expertise and financial resources of its participant investors to provide asset managers with the first fully integrated end-to-end straight-through processing outsourcing solution using a dedicated Internet portal. Encompys combines the expertise of its four key partners. Accenture will serve as consulting services provider; The Bank of New York will deliver trade execution, securities servicing support as well as master record keeping services; Microsoft Corporation will supply system software and Internet portal applications; and Compaq Computer Corporation will provide servers and related hardware. Will it work? Don’t ask me – I’m just reporting the facts.

CitiConnect for Securities offers end-to-end capabilities, including straight-through trading execution, order routing, settlement, and safekeeping of assets. Banks with retail securities customers can plug in additional Citigroup services as needed, such as foreign exchange, treasury, research and cash management.

Abraham joins Citi from Deutsche Bank, where he was chief operating officer for its securities and investment banking business in Japan. Abraham has nearly 20 years of experience of independent and organisational consulting experience, most notably as a partner at Andersen Consulting. He has also been a frequent contributor to trade publications.

Citi’s outsourcing business has never really left the starting grid, but Abraham’s arrival suggests that it is finally getting serious about an industry sector currently dominated by the top three custodians.

The asset administration unit of BGI provides custody, accounting, administration and other back office functions for BGI's clients. The unit, which administered approximately $473 billion in assets as at March 31, 2001, will become part of Investors Bank & Trust Company, a wholly owned subsidiary of Investors Financial Services Corp. After the deal goes live, assets serviced by Investors Financial will total over $787 billion and the company will be responsible for calculating over 2,200 net asset values daily.

In the transaction, Investors Financial will assume an employee base and management team of 275 professionals. It will also take on technology platforms and infrastructure currently used in the unit, which will remain based in Sacramento, California.

‘This alliance represents the next step in our long term relationship with Investors Bank. It enables us to focus on our core competencies of product development and investment management,’ said Andrea M. Zulberti, managing director and head of global operations of Barclays Global Investors. "Our companies have enjoyed a strong relationship since 1996, when one of BGI's family of funds selected Investors Bank to provide custody and administration services. Investors Bank was again selected as servicing partner for our launch of exchange traded funds in the spring of 2000. We're thrilled about this next step in the evolution of our relationship.'

Investors Financial recently reported first quarter diluted earnings per share of $0.32, an increase of 33% from $0.24 in the first quarter of 2000. Net income for the first quarter was $10.3 million, up 42% from $7.3 million in the first quarter of 2000.

Hunt’s move, to what is effectively the product development unit for Citi’s securities services business, comes after Susan Ebenston recently quit her role as director of business strategy for State Street in London to join Citi’s product management team, working for Francis Jackson. Ebenston had a key role in securing State Street’s recent outsourcing agreement with Scottish Widows.

• to analyse the current situation (including institutional set-up) for cross-border clearing and settlement in the market concerned;
• to consider the requirements against which the efficiency of possible alternative arrangements for clearing, settlement and depository services can be assessed; and
• to identify some possible alternative arrangements for clearing, settlement and depository functionalities.

In this final part of the mandate, the objective would be to identify a small number of possible alternative arrangements for clearing, settlement and depository functionalities. According to the Commission, a possible set of alternative arrangements would be:

a centralised pan-EU utility for clearing, settlement and depository functionalities;

a centralised pan-EU clearing counterparty with multiple settlement systems and depositories; and

multiple vertically integrated clearing, settlement (and depository) "silos" linked to ensure pan-EU coverage.

Questionnaires can be downloaded from http://europa.eu.int/comm/economy_finance/giovannini/questionnaire_form_en.doc

and have to be returned by 4^th May.

TOWER Trust has assets worth over NZ$21.0 billion under supervision and provides corporate trust, personal trust, master custody, investment accounting, private portfolio, mortgage administration and managed fund registry services to leading financial institutions and fund managers.

CI Mutual Funds Inc. is wholly-owned by CI Fund Management Inc., an independent, Canadian-owned investment management company, and is the ninth-largest fund company in Canada.

IMRO’s charge sheet is pretty damning. Breaches included:

Failure to reconcile transactions on the firm’s system with customer orders, the unit register or the trading bank account;

Failure to have adequate resources to carry out effective compliance monitoring and hence failure to carry out timely and adequate compliance monitoring of its procedures;

Failure to ensure that all information provided to IMRO was accurate;

Failure promptly to inform IMRO of material and relevant matters;

Failure to calculate initial charges correctly, resulting in over-charging on unit trusts under its administration;

Failure to execute customer orders and dispatch customer proceeds as soon as reasonably practicable;

Failure to make payments of distributions to investors on the due date and/or to calculate the amount due accurately; and,

Failure to have an adequate training and competence regime in place for staff.

BISYS had to reconstruct its entire records for one of its institutional clients. The reconstruction of records to restore investor funds to their true position, as required by IMRO, meant that BISYS had to make compensation payments of around £145,000 in addition to adjustments to the investors’ holdings in the unit register of more than £759,000.

‘The deal marks Mellon’s first client win in the stakeholder pensions administration market in the UK,’ said Conor Hoey, head of pensions at Mellon Trust. ‘It is our belief that the pensions market will move increasingly towards outsourcing its administration, as the 1% cap on stakeholder charges begins to bite. Through this deal with Nationwide Unit Trust Managers, we can demonstrate the real business benefits of outsourcing to the marketplace.’

The deal also marks an expansion of the relationship between Mellon and Nationwide. Mellon Trust also provides fund accounting and investor administration services to the building society’s unit trust and equity ISA product ranges.

The immediate question is where this leaves Mark Tennant, the ebullient head of Global Fund Services in EMEA who was thought by some to be Jewitt’s obvious replacement. Tennant has turned this business unit, which looks after asset managers, mutual funds, unit trusts, OEICs and other collective investment vehicles, into a highly successful operation, and has led the bank into new areas such as fund supermarket administration through its participation in FundsHub.

Jewitt has overseen phenomenal growth of the Investor Services business in EMEA, consolidating the bank’s position as one of the world’s top three custodians. In the UK, JPMorgan Chase acts as custodian for five of the top six pension funds, is trustee/custodian for more than a third of the unit trust market and is depositary for over half of the OEICs market.

‘At this point,’ said Edelstein, ‘I think it’s time for a change and a chance to pursue other business interests that I’ve had for some time. I am committed to stay on with Thomson as an advisor, and to work with Adam Bryan (his replacement) and Bob McGrail (Omgeo’s chairman) to complete the regulatory approval process and the launch of this new company.’

Adam Bryan has been named Omgeo’s new president and CEO. He was chief operating officer of the Broker/Fund Management group of Thomson Financial, a position he had held since May 2000. Bryan also served as chief operating officer of Thomson Financial ESG, where he was responsible for the development and implementation of the strategic and operational missions of the company. He also served as managing director for ESG, overseeing all Thomson ESG management, sales and business activities throughout the Asia Pacific region, including Australia and Japan.

Omgeo has also named five external directors:

• Alexander Lamont II, formerly director of international operations and control for the Equity Trading Department of FMR Co.;
• Jürgen Marziniak, chief executive officer, Global Securities Services at Deutsche Bank AG;
• Eileen K. Murray, chief administrative officer, Morgan Stanley Dean Witter’s International Securities Group;
• Thomas J. Perna, senior executive vice president, The Bank Of New York; and
• Diane L. Schueneman, first vice president, Merrill Lynch Investment Managers.

‘Mellon’s strong reporting and analytical tools, combined with an exceptional commitment of personnel, made them the clear choice in this partnership," said Rick Dahl, MOSERS chief investment officer/assistant director. "We are looking forward to a very successful relationship.’

Jiway is an electronic-order and quote-driven market that provides a single access point for equities from the major European and US markets. Jiway currently trades over 1,300 shares from France, Sweden, Germany, Holland, the US and the UK. The exchange offers anonymous trading, safekeeping and corporate action services. These services are now available to brokers connected to Jiway in the UK, Sweden and Germany. Brokers from France, Switzerland, Holland and Italy will connect to Jiway during 2001. Jiway was founded by the OM Gruppen and Morgan Stanley Dean Witter & Co.

The study will be led by a steering committee that includes senior representatives of the private sector and leading public sector figures who will serve as advisors. Given the range of issues involved, the Committee will include prominent members of the Group of Thirty as well as experts recruited from outside the Group. The committee will be chaired by Andrew Large, deputy chairman of Barclays plc, while G30 members John G. Heimann, senior advisor to the Financial Stability Institute, and David Walker, senior advisor to Morgan Stanley International, will serve as vice chairmen. Also serving on the Committee are:

Daniel Bouton, Chairman and Co-CEO, Société Générale

Rolf Breuer, Speaker, Board of Managing Directors, Deutsche Bank

Marshall N. Carter, Chairman/CEO (Retired), State Street Corporation

Jill M. Considine, Chairman & CEO, Depository Trust and Clearing Corp.

E. Gerald Corrigan, Managing Director, Goldman Sachs

Andrew Crockett, General Manager, Bank for International Settlements

Howard Davies, Chairman, Financial Services Authority

William B. Harrison, Jr., President and CEO, JP Morgan Chase & Co.

Gerd Häusler, Senior Advisor, Deutsche Börse AG

Mervyn King, Deputy Governor, Bank of England

William J. McDonough, President, Federal Reserve Bank of New York

John Olds, Vice Chairman & CEO, DBS Group Holdings

Marcel Ospel, President, Group Executive Board, UBS

Tommaso Padoa-Schioppa, Member of the Executive Board, European Central Bank

Robert C. Pozen, Vice Chairman, Fidelity Investments

Alessandro Profumo, Chief Executive Officer, UniCredito Italiano

Andrew L.T. Sheng, Chairman, Securities and Futures Commission, Hong Kong

John L. Steffens, Vice Chairman, Merrill Lynch

Jean-Claude Trichet, Governor, Banque de France

Yutaka Yamaguchi, Deputy Governor, Bank of Japan

The Group of Thirty is a non-profit, non-political organisation that explores issues of business practice and public policy and suggests measures to address systemic risk and improve the functioning of the international financial system. The Group has an internationally diverse membership drawn from the public and private sectors and academia. The Group’s work includes, among others, proposals to improve market function in the areas of foreign exchange markets, clearance and settlements in global securities markets and derivatives risk management.

‘We are very impressed with the Bank's ability to integrate custody and clearing services, the capabilities of its technology platform, INFORM, and the strength of its network management organisation, all of which distinguish The Bank of New York as a leader in the securities servicing industry,’ said Steve McSweeney, chief operations officer at Harvard Management. ‘Further, the Bank's around-the-clock servicing coupled with its flexibility and technology leadership, ensure that Harvard's unique requirements will be met.’

F&C manages GBP25.1 billion for both institutions and retail investors in the UK and overseas. Founded in 1868, F&C is one of the City's oldest investment management companies. BBH Dublin provides custody and fund administration services to F&C’s Romanian Fund, and BBH Luxembourg provides custody and fund administration services for all of F&C’s Luxembourg funds.

State Street assumed all fund accounting and daily pricing services for Merrill Lynch's US retail mutual funds, comprising 227 portfolios with a total asset value of approximately USD$163 billion, at the beginning of the year.

Trade Input provides fund managers and clients with a secure, reliable method to send trade instructions via the Web, and is targeted for users who send faxes or other manual communication to Northern Trust for trade settlement instructions.

‘This product is part of Northern Trust’s larger strategy to help our clients and fund managers migrate to a straight-through processing environment,’ said Kathy Dugan, vice president at Northern Trust. ‘Offering an array of automated trade communication methodologies, from simple to sophisticated, helps managers to eliminate faxed instructions. This reduces the risk of input errors, creates an audit trail, and speeds trade settlement.’

The Nasdaq Japan Market’s International Section is scheduled to open in April of this year followed by trading planned in June. The Nasdaq Japan International Section will make stocks from Nasdaq (US), Asia Pacific and other global companies available to Japanese investors for trading in Japanese yen.

All Nasdaq Japan international stocks will be cleared through Citibank. Cash obligations will continue to be cleared through OSE's existing cash clearing agents.

Jill Laycock, Hertfordshire County Council’s corporate accountancy group manager, said: "We have taken the decision to appoint a global custodian in order to streamline administration and to enable us to take advantage of added-value services in the future, such as stock-lending and cash management. The decision to appoint ABN AMRO Mellon was based on the quality of service on offer at a very competitive price."

This is ABN AMRO Mellon’s first UK local authority mandate, and comes on the heels of vastly improved results in the highly influential R&M Consultants’ global custody survey. Nadine Chakar, managing director, ABN AMRO Mellon said: "We see this award as validation of the efforts our team have made in the UK, and for this marketplace to recognise ABN AMRO Mellon as a viable alternative to the competition. We look forward to a long and fruitful relationship with Hertfordshire County Council. We believe that the quality of our people made a significant contribution to ABN AMRO Mellon winning this mandate."

Richard Surrency will replace Johnson. Surrency joined Royal Trust GSS in June 1998, working out of Singapore and, more recently, Hong Kong as regional vice president of sales and relationship management for Asia. The appointment is effective immediately. The sales and relationship management group in Asia will continue to report to Surrency. will replace Johnson. Surrency joined Royal Trust GSS in June 1998, working out of Singapore and, more recently, Hong Kong as regional vice president of sales and relationship management for Asia. The appointment is effective immediately. The sales and relationship management group in Asia will continue to report to Surrency. will replace Johnson. Surrency joined Royal Trust GSS in June 1998, working out of Singapore and, more recently, Hong Kong as regional vice president of sales and relationship management for Asia. The appointment is effective immediately. The sales and relationship management group in Asia will continue to report to Surrency.

The joint venture, based in Seoul, combines Korea Exchange Bank's existing investment administration business, one of the largest in South Korea, with State Street's well-established global process management and technology operations. The new entity will become the premier provider of fund administration services in Korea.

"We look forward to collaborating with a pre-eminent institution, Korea Exchange Bank, to establish a new leader in this vibrant, vast-growing market. As the world's eleventh largest economy and second largest institutional investment market in Asia with $450 billion in institutional assets, South Korea is an important marketplace for State Street, particularly as sophisticated institutions' demands for outsourced investment administration services continues to grow worldwide. This partnership is a key milestone in our efforts to expand our service offerings to financial institutions operating in Korea," said Robert R. Williams, executive vice president of State Street.

In September 1998, South Korea created a new collective funds structure, which is similar to US mutual funds. In April 2000, the South Korean government further introduced a new regulation that requires mutual funds management companies to outsource their fund administration work to independent asset servicing companies.

"Making the move to T+1 settlement will involve significant changes in systems and back office processes at virtually all financial services organisations," said Thomas McCarthy, managing director, DTCC Product Marketing and Development. "We wanted to be out front, ahead of the curve in giving the industry a clear snapshot of events and expectations."

Among some of the key changes planned by DTCC’s subsidiaries are: re-engineering of its Continuous Net Settlement (CNS) system, real-time position reporting and real-time late trade capability by mid-2003; implementation of a single settlement system for DTC and NSCC by the end of first quarter 2003; the implementation of early netting by the beginning of second quarter 2002; implementation of real-time fixed income trade matching by mid-2003, and elimination of hard-copy trade reporting output by mid-2001.

A booklet detailing the projects and the timeframe that DTCC will be pursing has been distributed to all participants of DTC and NSCC. In addition, the information is now available on DTCC’s Web site at www.dtcc.com.

Margaret Barrett becomes vice president, investment fund accounting and conversions. Barrett also joins the company's executive committee. Barrett will be responsible for overseeing the accounting activity of the daily valued pooled and mutual fund clients, monthly financial and accounting statements for pension and other custody clients and participant record keeping for mutual and pooled funds. Barrett joined CIBC Mellon in 1997 with the acquisition of the Canada Trust custody business. She replaces Amy G Harkins, who is returning to Mellon Financial Corporation after accepting the position of director, global asset servicing. becomes vice president, investment fund accounting and conversions. Barrett also joins the company's executive committee. Barrett will be responsible for overseeing the accounting activity of the daily valued pooled and mutual fund clients, monthly financial and accounting statements for pension and other custody clients and participant record keeping for mutual and pooled funds. Barrett joined CIBC Mellon in 1997 with the acquisition of the Canada Trust custody business. She replaces Amy G Harkins, who is returning to Mellon Financial Corporation after accepting the position of director, global asset servicing. becomes vice president, investment fund accounting and conversions. Barrett also joins the company's executive committee. Barrett will be responsible for overseeing the accounting activity of the daily valued pooled and mutual fund clients, monthly financial and accounting statements for pension and other custody clients and participant record keeping for mutual and pooled funds. Barrett joined CIBC Mellon in 1997 with the acquisition of the Canada Trust custody business. She replaces Amy G Harkins, who is returning to Mellon Financial Corporation after accepting the position of director, global asset servicing.

Meanwhile, Warren Maynard has been appointed as assistant vice president and head of business development, global securities lending (GSL), for CIBC Mellon Global Securities Services Company. Maynard will be responsible for identifying new product opportunities, increasing business development activities and overseeing client service initiatives. Maynard has more than 13 years’ experience in the custody industry, with a primary focus on securities lending. Prior to joining CIBC Mellon, Maynard held several positions with Royal Trust Global Securities Services, most recently serving as head of global sales and marketing for global securities lending.

Tierney will contribute to SIA's efforts on industry projects such as T+1 settlement, extended trading hours, and new order processing rules. He will also serve as an advisor to SIA's T+1 Steering Committee, Decimalization Steering Committee, and their associated subcommittees.

12FEB01: JP Morgan Investor Services, the ridiculous name by which we are now expected to call Chase's custody business, has launched a full spectrum of exchange-traded fund (ETF) servicing capabilities, including custody, securities processing, index receipt agent, transfer agency, fund/trust administration and fund accounting.

ETFs are similar to index mutual funds in that they track an index, provide diversification for investors, and are relatively low cost. Unlike traditional index mutual funds, ETFs trade and price like a stock, as they can be bought and sold on a securities exchange throughout the day.

The Vanguard Group recently awarded JP Morgan Investor Services custody of approximately US$157 billion in assets for six of its mutual funds. Through this arrangement, JP Morgan Investor Services will also conduct securities processing for Vanguard’s proposed offering of exchange-traded shares, known as VIPERS (Vanguard Index Participation Equity Receipts), when they become effective.

A board of six will run the organisation with Jim Phillips, director, commercial, HSBC Global Fund Services, as chairman. Phillips commented: ‘The new organisation has the support of the entire industry. The 16 founder shareholders include all the major firms, but there are several others who for administrative or other reasons have not as yet taken up a shareholding. They have sent us messages of support and we will find ways of working with them.’

The 16 initial shareholders are: Abbey National Financial & Investment Services, Aberdeen Asset Management, AEGON Asset Management, Baillie Gifford & Co, Britannic Asset Management, Edinburgh Fund Managers plc, Franklin Templeton Investments, HSBC Global Fund Services, J P Morgan Investment Services, Martin Currie, Newton Investment Management, The Royal Bank of Scotland, State Street, Scottish Widows, Standard Life Investments, WM Company.

Quinn has worked at Citibank since 1997, most recently as senior manager responsible for all trustee sales and account management in European offshore centres. He previously worked at Chase and Swiss Bank Corporation.

‘Northern Trust has been an outstanding partner with our parent company, Old Republic International Corporation,’ said Paul Davenport, RMIC Treasurer. ‘I look forward to building a similar, long-standing relationship with them as well.’

Under the terms of the agreement, Global Crossing will manage the development and operation of SWIFT's Secure IP Network (SIPN) infrastructure, which will become a virtual private network (VPN) within Global Crossing's existing IP extranet infrastructure. Global Crossing will also assume responsibility for maintaining SWIFT's current X.25 network, which over time will be replaced by the SIPN to provide a seamless and unified network to support SWIFT's global products and services.

‘A key operations goal for SWIFT is to deliver secure, high-quality solutions to our customers as quickly as possible,’ said Joe Eng, SWIFT's chief information officer. ‘Under this unique partnership arrangement, SWIFT will co-design, co-implement, co-test, and co-manage the network with Global Crossing, but our customers will continue to have a single provider, a single network and a single point of contact. It's a win-win-win situation.’ Three wins can’t be bad, can it?

• Timothy J. Connelly, 41, has been a managing director of the firm responsible for BBH's distributed products business. He joined BBH in 1984 as a portfolio manager and previous responsibilities included managing BBH's Boston Office investment effort.
• John P. Molner, 38, will oversee corporate advisory services at BBH, including mergers and acquisitions services. Since joining the firm in 1990, Mr. Molner has risen to managing director and co-head of the firm's mergers and acquisitions group. He has also been involved in raising capital commitments and selecting investments for BBH's 1818 funds, the firm's private equity funds.
• William B. Tyree, 38, has been a managing director of the firm in New York. Mr. Tyree will continue to run the Bank's treasury division with specific responsibility for global asset-liability management. He originally joined BBH as a commercial banker in 1985.

‘After a thorough review process of our multiple service providers, The Bank of New York has been selected as sole custodian for the Government of Bermuda's public funds," said C. Eugene Cox, JP, MP, Minister of Finance, Bermuda. ‘One of the key factors in our decision was the Bank's ability to provide the Internet-based reporting capabilities that will help us monitor our investments.’

The compact expresses ‘the group’s determination to further the industry’s dialogue, the adoption of best practices and the pursuit of strategies to support local and regional market initiatives on CCP in the context of a global framework’.

The co-sponsors are planning to meet in the coming weeks to review the findings of the conference working groups and develop a series of initiatives and actions in support of their objective to improve CCP capabilities. In addition, the CCPs agreed to follow-up conference sessions to monitor progress of existing efforts and to foster continuing opportunities for dialogue.

The specific issues the CCPs are committed to addressing include:

• To define, with the industry, minimum acceptable standards for operations, risk management and legal structures necessary to further the goal of CCP interconnection across borders.
• To understand the current limits on cooperation among CCPs set by relevant law and to gain support for greater harmony from regulators. This includes supporting initiatives by trade groups and organisations that address legal and regulatory frameworks, for example, regarding reciprocal claims and guarantees.
• To identify and understand the potential benefits to be gained from the more effective use of collateral across geographies, markets and financial instrument types.
• To promote an analysis of business benefits which could arise from greater co-operation among CCPs around the globe, including looking at issues such as netting, cross-margining, and cross-membership.
• To increase CCP understanding of the needs and priorities of the constituencies they serve, including market participants, marketplaces and regulators, and to foster on-going dialogues and knowledge sharing among CCPs to improve standards, linkages and interoperability.
• To continue knowledge sharing and develop more cooperation among CCPs cross-border through research, surveys and publications.

Immediate initiatives will include a summary report on the conference and publication of material that can educate and create greater awareness on issues challenging CCPs.

Sheryl Muniz, senior vice president of Northern Trust, London Branch, commented: ‘We feel very confident about hiring Proxy Monitor as our new global proxy service provider, as they have clearly demonstrated market expertise and currently offer the most advanced and dynamic capabilities in the global industry.’

In Edinburgh, 120 additional jobs are planned in the near to medium term at Hexagon, shortly to become part of J.P. Morgan Investor Services. Hexagon provides third party fund accounting services to asset managers in the UK, administering over 350 funds and 10% of the UK unit trust industry.

Colin Wilson, Managing Director, Hexagon, Edinburgh said: ‘Expected fund-servicing business growth over the medium term will lead to the creation of 120 new jobs in Hexagon in Edinburgh. This expansion demonstrates J.P. Morgan’s continued commitment to Edinburgh, and our strategic commitment to the fund-servicing business. The growth of this business is as a result of the continued growth of savings investment in pensions, insurance and mutual fund products in Europe.’ J.P. Morgan Investor Services in Edinburgh will provide UK fund administration services for UK collective investment schemes, such as Unit Trusts and OEICs.

Hexagon was previously a subsidiary of Save & Prosper Group Ltd, part of the Robert Fleming group before its acquisition by Chase. It claims to have a wide range of asset management customers in the UK, including Scottish asset managers. The company has 135 staff based in Edinburgh.

25JAN01: Citibank Worldwide Securities Services (WWSS) has appointed Katya Novikova as securities country manager in Russia.

Reporting to Mark Kelley, WWSS market manager for Central and Eastern Europe, Middle East and Africa, Katya will be responsible for Citibank’s securities businesses in Russia including Citicorp Global Agency and Trust, and services for financial intermediaries and global investors.

Katya joined Citibank in 1993 after graduating from the State Academy of Finance, and has worked in a number of positions in Moscow during her career including Head of Custody Operations, and most recently as Head of the Internal Control and Quality Assurance Departments.

24JAN01: An Post, the Irish Post Office, has awarded the global custody mandate of its pension fund to ABN AMRO Mellon. The mandate covers An Post’s IR£1.4 billion (€1.77 billion) pension fund assets under management. The custody mandate will be managed from ABN AMRO Mellon’s London operation, with support and input coming from Mellon’s 50-strong Dublin operation. ABN AMRO Mellon will be providing core custody services, full investment accounting, compliance monitoring and cash management, and is the latest European client win for the strategic alliance.

The appointment of a global custodian is the latest move in a restructuring of An Post’s pension scheme, following a review of their long term investment strategy. This also includes increasing the number of fund managers from three to four. An Post’s asset pool has grown from just IR£350 million five years ago to quadruple that figure today.

In addition to Luxembourg and Frankfurt, Clearstream Banking has six regional offices across five global regions - Dubai, Hong Kong, London, New York, São Paulo and Tokyo.

Global Link is State Street's central network for providing a broad array of advanced e-finance applications and services with full connectivity to global investment managers' chosen trading destinations. The private network, currently used by 262 asset management companies, including 15 of the world's 20 largest, offers world market research, analytics and trade execution services across multiple assets, including equities, foreign-exchange and fixed income. Global Link's users, spanning 21 countries, collectively manage over half of the world's professionally managed cross-border assets.

The UK pooled fund assets include Fidelity’s 16 UK institutional OEIC funds and 31 retail funds. This includes its OEIC, unit trust and investment trust ranges. Fidelity is the largest independent fund management organisation in the world, with over US$1 trillion of assets under management.

Simon Haslam, a managing director at Fidelity, said: 'Following a strategic review, detailed presentations and extensive due diligence, we have decided to appoint Chase as our new custodian for our UK-based funds. The decision reflects our desire to ensure maximum efficiencies for our clients. We were particularly impressed with Chase’s commitment to technology and their focus on proactive client service. We believe they will serve our clients well, as we continue to grow our product range and assets under management.'

One poignant footnote to the merger: Sicovam gets four seats on the board of the holding company, Euroclear Clearance System plc, one of which will be taken by Jacques-Philippe Marson, head of securities services at BNP Paribas. Old lags will remember that Marson was once director of marketing and operations at…Cedel, a post he left in 1992.

The outsourcing mandate, described modestly by BNY as 'one of the most important and largest in continental Europe', was awarded after a review of the leading market providers. Artesia BC currently has its securities processed through a network of numerous custodian banks. Although no numbers have been disclosed, it is thought that the deal covers about USD40 billion of assets.

Claude Piret, Director of the Board, Artesia BC, said of the agreement: 'We chose The Bank of New York from several competitors. As a reputable international financial services provider, The Bank of New York offered the best solutions and technology. By entrusting the processing of securities transactions to one global custodian, Artesia BC will be able to further improve its customer service.'

On a more serious note, the two firms also announced plans to expand the board of directors of the new company from seven to nine members in order to accommodate two additional representatives from the global securities industry.

David Whitehead comes in as the new company secretary, to replace Geoffrey Shepheard. Whitehead was formerly at Lloyd's of London as company secretary.