HSBC Brazil has scored a major win as it has secured the sub custody business of JPMorgan Chase at the expense of Citigroup.
The market rumor was overheard at the BEST Brazil: Excellence in Securities Transactions seminar held on Wednesday at the Le Parker Meridien Hotel in New York City. The exact amount of JPMorgan’s book of business was not discussed, but it was said to have comprised 33% of Citigroup’s total sub custody business in Brazil. With $11 trillion in total assets under custody worldwide, JPMorgan is always a prized client and Brazil is no exception as it was said that JPMorgan represented over 20% of the global custody business in Brazil.
Indeed, the news is a bit of a surprise, as Citigroup has the pick of the cross-border, non-affiliated clients in Brazil, with most of the major investment banks and global custodians using the bank as their agent in So Paulo. Global Custodian’s Survey of Agent Banks in Emerging Markets result confirm the American bank’s position at the top of the sub custody heap in Brazil, as Citigroup was awarded Best Agent Bank in Brazil and Best Agent Bank in Latin America in 2004.
JPMorgan, HSBC and Citigroup all declined to comment.