While the rivals concentrate on building a global system to the same gauge which will attempt to link systems as disparate as those of the United States and Indonesia, regional custody players are building their own STP components. Costs can be greatly reduced, so we work with our clients to maximise their STP messages and we get some up from 60 to 90 per cent. You also need a minimum standard among national systems and central depositories. Chong Jin Leow, Deutsche Bank's head of customer management for the Asia Pacific, agrees that one of the keys to the establishment of STP in Asia is with the local agents and depositories. Everyone agrees that the authorities who run the CDs have got to interface with the sub-custodians before introducing their own idea of what STP systems need.
Most markets are already immobilized and dematerialized.
India was once an all-paper environment, but in equities, it is completely depository,' says Chong. Of the established Asian markets only Jakarta has yet to make the switch. In Asia, it seems, the pieces of the STP jigsaw are on the table. Now they need joining up to form the big picture. Review Publishing Company Limited, Hong Kong.