CHICAGO - Executives of The Northern Trust Co. Canada expect to increase custody and trust business in Canada now that they have full powers to act as a trust bank there.
The Northern Trust Co., Chicago, became the first non-Canadian financial institution to have a wholly owned subsidiary trust company in Canada holding a Canadian federal trust charter. The Northern Trust owns The Northern Trust Co. Canada.
Until recently, Northern Trust Canada had the right to act as custodian, but not trustee in Canada. That restriction hindered the bank getting business from companies needing trust as well as custody services in Canada.
Now that Northern Trust Canada offers both full trust and custody services, U.S.-based companies who use its Chicago-based parent for custody and trust services should see both banks as more attractive, according to John Pike, president and chief executive officer of Northern Trust Canada.
Companies with assets trusteed in both countries can get uniform trust and custody reporting by using Northern Trust.
"We have talked to a number of our clients in Chicago with Canadian subsidiaries and they want to fold (the Canadian subsidiary) into the Northern Trust Co. family as a whole," said Mr. Pike.
The Northern Trust Cos. can offer the same type of custody and trust reporting formats.
He said Northern Trust also can offer "economies of scale" by handling the trust and custody services for a company in both countries.
He added Northern Trust, when competing against smaller banks in Canada, has a "better infrastructure for multicurrency reporting, settling transactions, and performing custody transactions in emerging markets."
CHICAGO - Eleven global custodians report offering global custody services in more than 50 countries.
In a Pensions & Investments survey of major trust and custody banks, banks noting that they offered global custody services in at least 50 countries as of June 30 were:
State Street Bank and Trust Co., Boston, 66;
Barclays Bank PLC, New York, 65;
Bankers Trust Co., New York, 60;
First National Bank of Chicago, 56;
Northern Trust Co., Chicago, 55;
Morgan Stanley Global Securities Services, New York, 55;
Mellon Trust, Pittsburgh, 52;
Bank of New York, 50;
Royal Trust Corp. of Canada, Toronto, 50;
PNC Bank, Lester, Pa., 50; and
Citibank N.A., New York, 50.
Another six banks - First Trust National Association, Wachovia Corp., Bank of Boston, Harris Trust, Chase Manhattan Bank and Bank of America - said they operated in 40 or more countries.
NEW YORK - Bankers Trust Co. is marketing its data distribution software called Digital Data Distribution System or BIDDS.
The software provides access to widely used market data feeds.
Bankers Trust executives claim BIDDS is used by 2,500 traders worldwide to manipulate market feeds and analyze the data.
Bankers Trust Financial Services Information Systems Corp., Bankers Trust's software subsidiary, and TradeTech Americas Inc., a systems integrator, will jointly promote and support BIDDS.