HSBC and Standard Chartered Each Plan Execution to Custody Platforms for Stock Connect

When Shanghai-Hong Kong Stock Connect goes live on November 17, both HSBC and Standard Chartered Hong Kong will launch an execution-to-custody solution.

Each bank’s solution will offer integrated execution, custody and clearing within the platforms, acting as both the broker and custodian.

HSBC’s solution, Custody Plus, will also offer a foreign exchange platform which removes the need to pre-deliver securities before the execution of sell orders on the Shanghai Stock Exchange, and HSBC will also offer institutional clients its equity brokerage platform on a standalone basis, as well as access to Shanghai-listed stocks via synthetic products.

Standard Chartered will also offer global custodians and investor clients to execute with pre-delivering securities, so in both cases, the platforms help meet regulatory requirements.

“In collaboration with Standard Chartered Securities, Standard Chartered’s Third Party Clearing solution provides a seamless execution and custody service for our Global Custodian and Investor clients. This means that our clients no longer need to pre-deliver their securities to their broker, which removes one of the key impediments to trading on the northbound leg of Stock Connect,” says Alan Naughton, head of Securities Services, Standard Chartered.

“A number of fund regulations do not allow funds to deliver their securities outside of a custodian before the trade. This platform helps our clients to solve this challenge and focus on their trading decisions,” adds Ian Banks, head of Securities Services, Asia-Pacific, at HSBC.
 
Last month, BNP Paribas Securities Services launched an integrated broker-custodian solution to help investors and asset managers access Shanghai-Hong Kong Stock Connect.