Australasia: Westpac Banking

Westpac Banking is the largest provider of custodian services in Australia and has 1,000 branches across the Australasia region. The Sydney-based institution has to work hard to stay ahead of stiff competition in the custody area from National Australia Bank and ANZ.

Westpac gets top grades in settlement services, account administration, informing clients of corporate actions, and technology.

The bank uses the Australian Stock Exchange's Clearing House Electronic Subregister System, or CHESS, to lessen the risk of settlement failure. Settlement is processed on a delivery-versus-payment basis, in which the transfer of securities and funds is simultaneous and irrevocable.

The Australian market is notably cyclical in nature, with peaks and troughs of activity from foreign in-vestors that mandates a flexible clearing and settlement system. At Westpac Custodians, foreign client holdings are held in a separate account at CHESS.

Westpac has developed an electronic interface with a third-party provider, Information Express, so that clients receive information on corporate actions promptly.

Copyright Global Finance Media Inc. Jul/Aug 2003
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