Bankers operating between the Grand Duchy and Hong Kong never cease to be impressed by the similarities between the two when doing business.
'Hong Kong and Luxembourg are extremely business-friendly places and have a reputation for getting things done quickly and efficiently. Financial services are also main pillars in both economies,' said Philippe Metoudi, head of Clearstream for Asia-Pacific, Middle East and Africa. 'Luxembourg is also one of the world's safest regulatory environments for the management and custody of collateral.'
Owned by the Deutsche Borse Group and headquartered in Luxembourg, Clearstream provides integrated securities services for the global finance community through settlement of transactions, custody of securities and the management of collateral and risk. Core clients include central banks, commercial banks and supranational organisations. The firm provides services to more than 2,500 financial institutions in more than 100 countries.
Mr Metoudi, named Custodian Banker of the Year by Hong Kong-based magazine The Asset, said Asia had been the firm's fastest-growing region for several years.
'Customers are very demanding but also appreciate stability and continuity. Asia represents about 25 per cent of Clearstream's business worldwide and continues to grow. When I first joined the firm in 1992, Asia represented about 1 per cent. We are gaining new customers and expanding our business with clients that value the convenience of doing business in a same-day environment,' he said.
Despite the global economic slump, Mr Metoudi said Clearstream had been less affected than many other financial business lines. He believes this is due to having predictable and reliable systems. 'The unprecedented financial market turmoil over recent months has highlighted the international centralised securities depository role as a genuine safe haven for assets and a powerful platform for liquidity in Asia,' he said.
'The global financial crisis has opened new windows of opportunity for Clearstream. While there has been a total freeze on money markets caused by a breakdown in trust among participants, there is still liquidity available. Through mechanisms involving secured lending, we have been able to provide clients with access to flexible collateral resources.'