Fiducitation: Global Custody Client Web
Portals
Author: Brian O’Keeffe
Date: 12/7/01 © 2001 Fiducite.com, Inc.
Fiducitation: A
synthesis of public Internet resources on the topic.
Instructions: Use the Table of Contents to navigate the document. Each citation has up to four distinct parts: Annotation, Clip, Source, and Cached File. Our Annotation and Clip (text or graphic from source document) help you decide whether to view the document. The source document may be viewed by clicking on the Source URL or by opening the embedded Cached File. All information is attributed to its source.
“Chase
Bank originated the concept of providing a specialized service for
institutional investors in foreign markets in 1974. Today, there are over 60 Banks
worldwide providing limited, or full, Global Custody services in up to 96
markets. These institutions service a growing business base whose total
potential is far from being realized. The primary driving force for the Global
Custody business is cross border investment, which… is projected to grow to
over $12 trillion (US) by the year 2000. .”
-http://sterlingnet.com/sterling/article2.htm
Today,
huge numbers of custody clients choose to use the web as a significant means of
communication with their custodian, and as such, custodians have made enormous
investments in the development of their client web portals. The custodians also hope reap the benefits
of effective web portals in the form of reduced need for human interaction, and
therefore better scale opportunities.
All of the
major custodians have advanced at a reasonably similar rate towards developing
a comprehensive portal. At this point,
most offer fairly comprehensive reporting and information availability, but are
not yet ready to handle trading, FX or corporate actions instructions through
their web portals. Most systems appear
to be used just about everywhere that the custodians operate. Where there is
data to the contrary, it is noted.
There is
very little data available on the usability and system performance. I did find
at least one independent review, and one survey for sale. I also spoke with
several experienced custody analysts who use a number of these systems daily to
get their unscientific opinion. Where
they offered opinions, they have been noted. I hope this answers your questions
effectively.
Overview and General Commentary
First, a table outlining the availability of the functions you requested in the systems of some of the world’s major custodians:
|
FX |
Trade Settlement |
CA Reporting and Instruction* |
Income Event Reporting |
Trade Entry |
Reporting |
Scheduler |
Market Info |
|
|
ABN-AMRO Mellon |
|
Y |
N |
|
Y |
Y |
Y |
Y |
|
Bank of New York |
Y |
Y |
|
|
Y |
Y |
N |
|
|
BNP Paribas |
Y |
Y |
Y |
Y |
N |
Y |
N |
N |
|
Brown Brothers Harriman |
|
|
N |
|
|
Y |
|
|
|
JP Morgan Chase |
Y |
Y |
N |
Y |
N |
Y |
N |
Y |
|
Northern Trust |
Y |
N |
N |
Y |
N |
Y |
N |
N |
|
State Street Bank |
Y |
Y |
N |
Y |
Y |
Y |
Y |
Y |
|
*All systems offer Corporate
Action Reporting, but only Paribas specifically offers instruction
capabilities |
||||||||
|
Key: Where a company's online
system definitively offers a feature, the column shows a 'Y'. If it is
unclear whether it is |
||||||||
|
offered, the space is blank. An 'N' means that the company
does not have that functionality in its web offerings |
||||||||
Financial Times Global Custody Survey: Betting Heavily on the Web
Annotation: This annual survey from the Financial Times addresses the efforts and plans of a number of global custody heavyweights in developing their web services. Specific references include Chase, Brown Brothers Harriman and Citibank.
Clip: With newer, more robust systems now in place, the industry
has turned its attention to the future and, along with most of the business
community, sees the internet as the best way to win clients and raise profits.
Source: http://surveys.ft.com/ln/ftsurveys/spbc86.htm
Cached
File: 
European Custody Technology Review
Annotation: This article
discusses the advance in global custody technology. It is not exclusively about
web services, but it does discuss (towards the end) how web service fit into
the overall technology package. This article is more about technical specs than
customer functionality.
Clip: The
Internet, and specifically web-based delivery to clients, is one area many
custodians are planning to concentrate on. IntesaBci cites web developments as
a likely area to invest in, and ABN AMRO Mellon said web-enabled information
delivery is a core driver, alongside STP, T+1, central matching initiatives and
corporate actions.
Source: http://www.fpionline.com/custody/mag/GCR_sample_articles/tech_survey_2001.asp
Cached File: 
Global Custodians on the Net
Annotation: This article
offers an independent review of the web-based client systems offered by the
major global custodians as of September, 2000.
Clip: Do custody websites reflect the central
importance that many of the global custodians say the Internet has for the
future of their industry? A quick review shows that while some do, or at least
try to, some don't.
Source: http://freespace.virgin.net/brian.bollen/samples/Internet.htm
Cached File:
Buttonwood Annual Survey
Annotation: This is from
a generally reliable source that has developed a summary of all new web product
offerings and incorporated it into their annual report. While they do offer
highlights from the 200 survey for free, the newest report (2001) is a pay
service and must be purchased for US $295.
Source: http://www.buttonwood.com/reg-2001.html
Cached Files: 
ABN-AMRO Mellon Global Securities Services Information Delivery
Annotation: AMRO cites
their Internet capabilities and the forthcoming capabilities of their Workbench
solution. Workbench is currently being
rolled out internationally.
Clip: Our second
step will be the launch of Workbench, the long awaited web-based product, in
the 3rd quarter of 2001. Already rolled out extensively in North America and
the UK, Workbench has been designed to meet all the custody information needs
of our clients online via a single logon over the World Wide Web.
Source: http://www.abnamromellon.com/page_frames.html
Cached File: 
Bank of New York Global Custody
Annotation: Bank of New
York is very vague about the functionality of their we-based client access
system, INFORM. They seem most
interested in highlighting the systems flexibility, and independent reviewers
generally give them high marks.
Clip: INFORM – The Bank of New York's
Internet-based custodial reporting system – gives you access to real-time,
online inquiry and reporting. Customized to your investment needs, Inform
provides multicurrency reporting, consolidates securities recordkeeping, and
gives you continuous access to the portfolio information you need to make sound
decisions.
Source: http://www.bankofny.com/pages/cibscustody.htm
Cached File: 
BoNY Online Instruction System
Annotation: This is an
instruction feature that appears to be relatively unique to BoNY. The PR discusses trade entry, and implies
that it can handle other instructions as well (potentially Corporate Actions of
Trade Settlement Instructions).
Clip: The Bank of
New York announced today the release of an enhanced version of INFORM, its
client communication platform. Using browser technology, clients can now have
access to Inform Instruction Capture (IIC), a secure trade instruction vehicle
that provides clients with real-time entry and validation of securities-related
instructions
Source: http://www.bankofny.com/pressrel/iic060700.htm
Cached File: 
BNP Paribas PB Link
Annotation:
Paribas offers PB Link as its core custody web
portal. Unique is that Paribas is the only system that explicity announces that
they will accept Corporaet Action and Foreign Exchange instructions through
their web portal.
Clip: Clients of
BNP Paribas Securities Services' PBLink® product require access to consistent
and consolidated information on cash and securities activities through a single
PC window
Source: http://securities.bnpparibas.com/Portail/Pages/EN/Products/PBlink/PRT_pgProductsPBlinkEN.html
Cached File: 
JPMorgan Announces TradeSTARR
Annotation: This is a
recent addition to JP Morgan’s online systems. TradeSTARR is a trade settlement
system that can be integrated with Morgan’s online custody portal.
Clip: JP Morgan
TradeSTARR uses a series of 10 metrics based on data from JP Morgan's
global-trade settlements database to measure, analyze and statistically rank
the settlement efficiency among broker/dealers, within and across markets.
Source: http://www.wallstreetandtech.com/story/WST20011025S0001
Cached
File: 
JP Morgan Investor Services Online Options
Annotation: This details
all of JP Morgan Chase’s online capabilities, including FX, custody services,
securities lending services and accounting.
Clip: JP Morgan Custody,
Accounting and Securities Lending Reporting provides Internet access to
on-demand custody, accounting and securities lending reports based on
intra-day, close-of-business or historical data.
Cached File: 
Northern Trust Passport Service
Special note: Northern received good marks in
an assessment provided during an informal interview with a senior custody
analyst from a major mutual fund manager.
This analyst works for one of the world’s largest custody customers, and
uses systems by Northern, Morgan, DB, Mellon (also noted as a good system),
State Street and BBH on a daily basis.
Annotation: Passport is
Northern Trust’s core online custody service offering. It is basically a reporting package, and
does not take instructions of offer trading or FX processing. **Please not the
demo available from this page.**
Clip: Passport's reporting
applications help you effectively manage your data and portfolio analysis,
investment decisions, and performance analytics, so you can minimize report
production and devote more time putting the results to work.
Source: http://www.northerntrust.com/corporate/onlineservices/custody/custodydetails.html
Cached File: 
Northern Trust FX Passport
Annotation:
Northern Trust’s online FX trading system,
this can be integrated into the other Passport offerings.
Clip: Northern Trust FX
PassportSM, a web-based FX trading tool developed in partnership
with REUTERS, quickly and efficiently executes and processes your
foreign exchange trades over the Internet at competitive dealing rates without
the burden of paperwork.
Source: http://www.northerntrust.com/corporate/onlineservices/foreignexchange/foreignexchangedetails.html
Cached File: 
EuroMoney 2000 Survey
Special note: My informal interviews were not
as kind to BBH. Analysts complained that the system is identical to BBH’s old
system (named BIDS) only it is now available over the web instead of through a
dedicated terminal. They report it to be less useful than the other systems.
Annotation: This survey
named BBH WorldView as the hands down winner in the development of a customer
web portal.
Clip: For the
second year in a row, BBH.com has been named "Best Site
for Custody" in Euromoney.com's Internet Awards. BBH
WorldViewSM is the single portal though which
customized reporting, risk information, extensive fund research, and foreign exchange
(among other services) can be accessed, 24 hours a day, anywhere in the world.
Source:
http://www.bbh.com/products/accquotes.html#6
Cached File: 
BBH Custody Services
Annotation: This is
simply a list of custody services provided by BBH, but almost every service can
be incorporated into a web-based client portal. Note specifically the OnLine
Demo of the FX System.
Clip: Throughout BBH's history, the
commitment to client needs has been paramount. At BBH, exceptional product
offerings and the most relevant technological solutions give you the edge you
need.
Source: http://www.bbh.com/products/fx_trading.html,
http://www.bbh.com/financial/our_services.html
Cached Files:
Marshall Carter’s Speech at the 2nd Anniversary of the Wired Index
Annotation: Mr. Carter
outlines State Street’s historical and future commitment to using technology to
serve their customers.
Clip: The global movement towards capital
market finance is a deep, permanent structural shift - towards open financial
systems - versus the more closed traditional financial systems common in
Continental Europe and North Asia. And this shift will be powerfully enhanced
by the Web.
Source: http://www.statestreet.com/stst/ssspeech.nsf/Speech/C19EA0D0FA99D465852568F6004A8A39?OpenDocument
Cached File:
State Street Services
Annotation: State Street has an incredibly broad array of services for different investors types. Each investor type has a different system designed exclusively for that type of customer. State Street offers a number of online custody portals, each with different functionality, but does not have one core offering. State Street allows the customer to choose whatever services they would like, and State Street builds online access based on the service offerings of each relationship.
Clip: Generate a list of services
targeted specifically to meet your needs. Scroll to the bottom of this page and
click the customer type that best describes you. Or, explore a particular
service category by clicking on a green service button.
Source: http://www.statestreet.com/stst/ssservice.nsf/Framesets/OurServices?OpenDocument
Cached File: