2000 Global Custody Yearbook
The Global Custody Yearbook
Seventh Annual Survey

Visit Buttonwood International
For Current Edition

Table of Contents
**** Note: Some topics require user authorization for access. ****

I. SURVEY RESULTS

P. 1

Letter From The Editor

Introduction
This special report on global custody - the 2000 Seventh Annual Global Custody Survey - was prepared by Buttonwood International Group, New York. The data collection efforts for the Survey were completed November/December 1999, with survey results appearing shortly thereafter at www.buttonwood.com.

Twelve of the world's largest global custodians were Survey Participants for our special Year 2000 edition.

Exhibits
A '99, '98 and '97 ranking of global custodians based on reported assets in custody.

P. 2

 Mixed Reviews of EM ...Little Progress Shown
Improvements in securities infrastructure are lackluster.
 
Global custodians vote on "most improved" and "most difficult" EM.    On a country basis, the pitfalls and sage advice for the investor are offered by custodians, from their firsthand and current experiences.  Improvements, or lack thereof, are described in the local markets, including  market entrance requirements,  local broker practices, clearing arrangements and banking practices. The greatest difficulty for the foreign investor - EM Hot Spots - are covered for the  following countries:   Africa, Argentina, Bangladesh, Brazil, Chile, Colombia, Costa Rica, Cote D'Ivoire, Ecuador, Egypt, Ghana, Greece, Hungary, India, Indonesia, Israel, Japan, Kazhakstan, Kenya, Malaysia,  Morocco, Nigeria, Pakistan, Poland, Portugal, Russia, Slovakia, South Africa and SubSahara, Swaziland,Taiwan, Trinidad & Tobago, Venezuela and Vietnam.

Exhibits
* Survey Universe, assets in custody, top ten countries,  total represents   $21 trillion.
* Second Tier Markets, assets in custody,  next fifteen markets, represents  $130  billion.
* Global Custodians Expand Their Networks, emerging markets, number of planned (2000) and actual (1999) additions, by country. 
Tables
*The Best and Worst EM of 1999
* Country Rankings, a three-year comparison of top ten countries, based on assets in custody.

P. 14

 Euro-zone Infrastructure
More to be done in 2000 and beyond.
A major milestone for the newly formed EMU (Economic and Monetary Union) - the euro currency was launched on January 1, 1999.  And as reported by last year’s survey, the global custodians were right on schedule with new policies, systems and operations procedures. The well-coordinated industry transition to the new currency went remarkably well. There is more to be done, as supported by Buttonwood’s survey of the major developments underway for the current year.   Custodians provide commentary on the critical issues for 2000 and their development challenges in the year's ahead. 

Exhibits
* Euro-zone in Year 2000 and Beyond.  Global custodians vote on their "development effort" to address euro-zone infrastructure, i.e. Payment Systems, Securities Settlement, The Exchanges, Legal and Tax, and U.K. Entry.

P. 19

 International Securities Lending
Business is booming. Mature European markets were strong ...Asian markets slowed-down.
The international segment of the securities lending business continues to grow dramatically as outstanding loan balances are reported 30% higher than last year.  The survey comments on the principal reasons for growth, the major markets, and trends.

Exhibits
* International Securities Lending, amount on loan, equity and  fixed income combined, '99 to '98 year-end comparison of outstanding balances by country.
* International Securities Lending, equities basis points spreads (hi/low/avg) by country, based on reports by eleven global  custodians. 
Tables
* A three year comparison of total outstanding loan balances by equity and fixed income.
* Equities,  a three year comparison, top 15 country rankings, reported equity s/l balances.
* Fixed Income, a three year comparison, top 15 country rankings, reported fixed income s/l balances.

P. 24

 The Internet Juggernaut
A wide-range of new products offerings ...plus enterprise-wide applications.
Starting five years ago, Buttonwood’s survey examined a new evolving trend - the use of the Internet for the global securities business. Last year’s survey identified a plethora of new Internet-based products - both available and under development - for clients and their investment managers.  This year’s survey, once again, explores these trends and the other uses of the Internet for real business applications in the securities industry.

P. 28

 GSTP Gains Momentum
U.S. T+1 initiative and GSTP going forward ...an ambitious schedule lies ahead.
Global Straight-Through Processing (GSTP) is quickly capturing the industry’s attention as the solution for streamlining post-trade processing.   The survey probes "early breaking" developments in both the T+1 initiative for U.S. securities and GSTPA initiative for cross-border trades. Custodians comment on the T+1 "building blocks," the real issues and the  feasibility of published target dates. 

Exhibits
* T+1 "Building Blocks."  Global custodians vote on the "level of difficulty" to implement necessary changes, i.e. Trade Matching, Cross-Border GSTP, Payment Finality, Physical Securities, and Electronic Storage.

II. EMERGING MARKETS IN-DEPTH
Global custodians provide a rare insight to experiences - encountered firsthand in the emerging markets. Essential information for the most seasoned global investor.

P. 2

 Renewed Confidence In Asia ...Malaysia, India, Japan, and Australia Reviewed, The Chase Manhattan Bank

P. 5

 Market Opening in Vietnam, Investors Bank and Trust Company

P. 8

 Due Diligence ...Brazil, India, Malta, Jordan, Morocco, State Street Corporation

III. GLOBAL CUSTODIAN PROFILES
Descriptions of the services offered by global custodians in worldwide securities markets.  Service categories are Client Workstation Technology, Cash Management, Derivatives, Foreign Exchange, Fund Accounting, Network Management, Offshore Funds, Portfolio Management and Performance Measurement, Proxy Services,   International Securities Lending, Tax Reclaims, Trade Execution and more.
P. 3   ABN AMRO Mellon Global Securities Services P. 66 Investors Bank and Trust Company
P. 18 The Bank of Bermuda Limited P. 72 Mellon Trust
P. 27 Brown Brothers Harriman & Co. P. 88 The Northern Trust Company
P. 36 The Chase Manhattan Bank P. 98 Paribas
P. 54 Citibank, N.A. P. 104 Royal Trust
P. 61 Deutsche Bank P. 117 State Street Corporation

IV. NETWORK MANAGEMENT
A Network Management Chart for each global custodian identifies the network by country, including current and planned network additions, proprietary/non-proprietary, subcustodians and SEC 17f(5) qualified status. 

ISBN 1-891008-10-2

Order your copy of The 2000 Global Custody Yearbook.

Download sample pages [277 KB file] of the 2000 Yearbook.
Use FREE Acrobat Reader for viewing.  ACROBAT
amazon.com lists the 2000 Global Custody Yearbook.

No part of Buttonwood's 2000 Yearbook may be reproduced or transmitted in any form or by any means without written permission of the publisher.

© Copyright 1994 - 2000 Buttonwood International,  All Rights Reserved.
One World Trade Center, Suite 7967
New York, N.Y. 10048 U.S.A.