Dutch custodian bank Kas-Associatie has established an affiliation with the Central Securities Depositary in Frankfurt, Germany in a move to increase its competitive strength in the market.
The result of the association means that KAS can now circumvent the need for a local correspondent bank to settle with the German CSD.
Consequently purchasing will be cheaper and KAS will also be able to directly service German securities.
In terms of clearing, settlement and custody of German securities, KAS will enjoy the same level of service previously reserved to banks located in Germany.
The processing of details and instructions regarding German securities will take place in Amsterdam at the bank’s central administration.
KAS has a similar link to the British, Belgian and Amsterdam markets and is currently aiming for an affiliation with France.