GERMANY – The Bank of New York and German private bank BHF-Bank have established a joint venture in Germany to provide securities custody and settlement services for asset managers and institutional investors.

The 50-50 venture, to be based in Frankfurt, will be called BHF BNY Securities Services GmbH. Financial details were not disclosed.

Although BNY has already been doing some custody business in Germany, a spokesman described the venture as its “first real foray” into the German institutional market. He declined to give any volume projections for the venture.

Said Tim Keaney, head of Europe at BNY: “The Bank of New York and BHF-Bank already have a well-functioning team selling custody services in Germany and have been operating together for a year. The time is now right to formalise this relationship.”

Added Dietmar Schmid, head of asset management at BHF-Bank: Given each bank’s expertise in its respective markets, BHF BNY Securities Services represents a perfect partnership.”

Since January 1, when it was taken over by rival private bank Sal. Oppenheim, BHF-Bank has emerged as a significant player in German institutional asset management. Its venture with BNY will pit it against such established custodians as State Street, BNP Paribas, and JP Morgan.

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