J.P. Morgan Chase is said to be looking to outsource its local custodian operations in Hong Kong and Taiwan. This is according to a Reuters report in which all sources have declined to be named. While Citigroup and Standard Chartered are both in the running for taking over the local custody businesses, global custody services will still be provided by J.P. Morgan.

The American bank is the world’s third largest global custodian, with around USD520 billion in assets under custody (AUC) in its local custody businesses in Hong Kong and Taiwan. According to Reuters, the firm has “in recent years exited lower-margin local custodian business from other markets in Asia Pacific including Australia”. This latest move is seen as a reflection of J.P. Morgan’s shift in focus.