HSBC will be offering sub-custody services to clients investing on the Dubai International Financial Exchange (DIFX) from its regional management office in the United Arab Emirates.
The DIFX, which opened for trading in September 2005, has granted HSBC’s Custody and Clearing approval to offer sub-custody services including settlement, safekeeping, and corporate actions.
“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,” said Steffen Schubert, chief executive of the DIFX. “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.