Banking and investment services

Tender description

Arbejdsmarkedets Tillægspension wishes to enter into a Global Custodian Agreement for a period of 4 to 6 years to replace the present agreement, which terminates 7th October 2019. Arbejdsmarkedets Tillægspension — which is a pension fund organised as an independent, self-governing institution governed by law - will be the contracting party. The contract will include services to Arbejdsmarkedets Tillægspension as well as its subsidiaries and schemes and entities administered or managed by Arbejdsmarkedets Tillægspension (collectively referred to as ATP in this notice). The Global Custody Agreement will compromise the following main services: Global custody/safekeeping services for securities and FX instruments. The global custody services will among other things include the following services. A. Safekeeping of ATP's securities and daily reconciliations between the custodian banks registrations and subcustodians/CSD's or ICSD's. B. Trade processing of ATP's securities and FX instrument trades. Services such as pre-matching of ATP's trade instructions, SSI enrichment and settlement of transactions are required by ATP. C. Cash management services such as daily management of ATP's settlement accounts in various currencies and payments to and from ATP's counterparties. D. Additional custody services such as e.g. handling of proceeds, corporate actions and reclaim of withholding tax, etc. E. Collateral management services related to the daily administration of mainly ATP's OTC derivatives (bilateral and cleared). This is contained as an option in the Global Custody Agreement. F) Credit facility to ATP of the equivalent amount of DKK 1 billion. This is contained as an option in the Global Custody Agreement. G) A Third-party Margin Account Agreement between the custodian bank, ATP and one of ATP's counterparties. This is contained as an option in the Global Custody Agreement. The custodian banks services are expected to be performed in a standard (high level of e.g. STP and IT security), which is expected to be delivered by the leading international providers of global custody services. We expect the custodian bank to improve its services on an on-going basis throughout the term of the agreement with ATP to match changes in market standards, products and best practices for the Global Custody and Collateral Management industry and we expect the global custodian to be willing to set new standards and support ATP's goals.