Dubai, Asharq Al-Awsat- HSBC’s Custody and Clearing is to offer sub-custody services to institutional investors wishing to invest on the newly opened Dubai International Financial Exchange (DIFX). HSBC will be offering these services to clients investing on the DIFX from its regional management office in the United Arab Emirates.
The DIFX, which opened for trading on 26 September 2005, has granted HSBC’s Custody and Clearing approval to offer sub-custody services including settlement, safekeeping, and corporate actions.
HSBC has worked together with the DIFX on the operations and documentation for omnibus accounts to ensure they meet international standards.
“We are very excited about the opportunities provided by the DIFX and look forward to making a significant contribution to its ongoing development,” said Arindam Das, HSBC’s Dubai-based Senior Vice President Middle East.
Steffen Schubert, chief executive of the DIFX, said: “The arrival of HSBC as a sub-custodian will facilitate thriving trading activity on the DIFX as it prepares to bring on many more products, as well as more members, in coming months. It is a significant step in the development of the DIFX as the leading financial exchange between Western Europe and East Asia.”
The DIFX currently has five member banks and its products include a US$741 million initial public offering of Global Depository Shares issued by the telecommunications company Investcom.
With HSBC’s new sub-custody service in Kuwait also being newly opened, HSBC has now established securities operations in ten countries making it the most widely represented international financial services organisation in the Middle East region. HSBC has been the only bank providing sub-custody services to local and cross-border institutional clients in the UAE since 1999. Its sub-custody network in the Middle East includes Bahrain, Egypt, Jordan, Lebanon, Oman, Palestine Autonomous Area, Qatar, Saudi Arabia, Kuwait and the UAE.
“The launch of our sub-custody services through the DIFX further demonstrates HSBC’s commitment to the Middle East region. We will be able to draw upon our global systems expertise as well as the best practices of the 36 markets in our award winning global sub-custody and clearing network to support investors in this market,” said Nick Bryan, Head of Securities Services Asia-Pacific, Middle East, and Latin America.