Standard Chartered has become the first bank to provide sub-custodian services for member companies of Dubai International Financial Exchange (DIFX), both said in a joint statement.
As a sub-custodian, Standard Chartered Bank offers to hold DIFX securities on behalf of institutional investors participating in this new market.
The bank will also provide settlement, safekeeping services, corporate actions and market information for customers who trade on the DIFX.
"Sub-custodian services will play a key role in the growth of the DIFX market. We are delighted to be able to rely on Standard Chartered's experience and expertise in this sector," said Steffen Schubert, chief executive of DIFX.
Standard Chartered's sub-custodian clients comprise the world's largest global custodians, broker-dealers, fund managers and institutional investors from North America, Europe and Asia.
The sub-custody service follows closely the exclusive clearing bank mandate by DIFX to Standard Chartered in July 2005.
As DIFX's clearing bank, Standard Chartered will process all cash receipts and payments for DIFX-appointed settlement banks under a tri-partite agreement between the DIFX, the clearing bank and each settlement bank.
In addition to the clearing bank and sub-custodian services, Standard Chartered provides cash management services to DIFX clearing members as one of its settlement banks.
Gulf News
