JP Morgan has agreed to let its custody business become a directly connected “account controller” at Euronext Securities Copenhagen, Denmark’s central securities depository. The CSD operator hails the move as a reflection of “a growing trend of shortening the value chain between issuers and investors”.
“A shorter custody chain brings significant efficiencies and enhances the overall client experience,” says JP Morgan’s head of global custody, Hanna Elson, in Euronext’s press release.
“This move further strengthens our franchise and growth plans across the Nordic Region and demonstrates our commitment to delivering efficient market access to global investors.”
Euronext, on its side, says it sees a growing relevance for international players in the custody business to directly access local markets through direct connectivity with local CSDs.
“There are obvious advantages of this for both custodians and the clients they serve, ranging from reduced costs, a shortened custody chain, enhanced transparency and operational efficiencies,” states the press release.