Euronext Securities Copenhagen today announced that J.P. Morgan has signed an agreement to become a direct participant in the Danish market.
The agreement reflects a growing trend of shortening the value chain between issuers and investors. Across Europe, it is becoming more relevant 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. Euronext Securities is responding to this trend by converging the infrastructure and expanding services.
Anthony Attia, Global Head of Primary Markets and Post Trade at Euronext, commented: “We have had a close relationship with J.P. Morgan for a number of years, and we are proud to bring this collaboration to the next level and support them in their role as an Account Controller on the Danish market. Shortening of the custody value chain is a key assumption of Euronext’s “Growth for Impact 2024” strategic plan. Today’s announcement shows this assumption is right. Structural changes like this one do not only produce tangible benefits for international clients, they fundamentally better connect European economies to global capital markets. Concretely international investors now have a more direct and efficient access to 1.5 trillion euros of assets issued in the Danish capital market.
The most efficient way of servicing a growing market
For J.P. Morgan, direct interface to the Danish market through local CSD connectivity will help drive its significant asset servicing presence in the Danish and Nordic markets.
Hannah Elson, Head of Global Custody at J.P. Morgan commented: ‘We are excited to partner with Euronext Securities in providing direct market access in Denmark to our global clients. A shorter custody chain brings significant efficiencies and enhances the overall client experience. 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’.
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