Jakob Kloch, section leader at ATP’s back office, told epn that ATP’s new tender was a part of regular re-tendering that EU laws require from public entities.

“We issued the first tender for a global custodian in 2001. We are looking to replace our existing contract with Nordea, which will expire at the end of February 2007,” he said.

According to ATP, the new agreement will comprise global custody services for Danish securities registered with VP Securities Services, listed and unlisted securities, listed financial instruments, and financial over-the-counter (OTC) products.

The global custody agreement must be able to handle a wide range of listed and unlisted Danish and foreign securities, money market instruments and financial instruments. It must supply assurance of price data, static data, corporate actions and other information concerning securities portfolios, financial instruments and benchmark portfolios on a daily basis.

The contract must also support ATP’s unit-linked scheme, Folkebørsen, which currently comprises approximately 200 registered funds. This means handling “shadow” custody accounts, including registration, settlement and payment in connection with trading and issues, and the redemption of mutual fund units in Danish as well as foreign mutual funds.

In addition, the contract must contain a separate offer of global custody services for the mutual funds in ATP Invest, which is ATP’s account-holding institution.

“The global custody agreement will be an important basis for fulfiling ATP’s vision of becoming the best worldwide pension fund in 2010,” said ATP’s tendering statement.

“We expect the global custodian to adjust its services on an ongoing basis throughout the term of the agreement with ATP in step with changes in market standards, products and best practice for the global custody industry, and that it is willing to develop new standards,” it continued.
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