The consolidation of securities services among global custodians continues apace, with the major players eager to snap up the leavings of those exiting the arena.

Citibank and State Street are two major custodians on the prowl for business that fits. Citibank in London has just pulled on board the global trust and agency services business of JP Morgan, while State Street has taken on the unit trust trustee business of the Bank of Scotland.

The Citibank move covers a portfolio of around 12,000 European global customers, including leading corporate, sovereign and supranational issuers. Essentially it is the issuing, paying agency and trustee function for Eurobonds, Euro medium term notes and commercial paper. The assets outstanding involved come to around $700bn and bring the bank's total to around $2,500bn.

Sandra Jaffee, Citibank head of worldwide securities services, says: "With the growth and broadening of of the European debt markets, we are seizing this opportunity, which brings us to a global markets leadership position."

State Street is using the opportunity to take over the Bank of Scotland trusteeship business comprising around £13bn ($22bn) for 183 funds. The US custodian intends to build a full service trustee accounting and administration operation based in Edinburgh for the UK unit trust and open-ended investment company (OIEC) fund market.

The 50 plus former Bank of Scotland employees will stay in the same building, servicing the same clients, but with a new name over the door.

For State Street it is the first step in building up a business, where it has has a significant presence in its domestic US market. Ronald Logue, who is responsible for mutual fund services business, says: "This acquisition represents a significant step forward in our mission to service institutional investors and collective investment vehicles locally." Both deals are subject to regulatory aproval. Fennell Betson

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