Custodian bank
Definition:
Applies mainly to international equities. Bank or other Financial institution that keeps custody of Stock certificates and other Assets of a mutual fund, individual, or corporate client.
Local custodian bank
In relation to American Depositary Receipts (ADRs), ...
Custodian Bank
Bank assigned by a mutual fund to act as its custodian. The bank performs clerical functions and holds the fund's cash and securities.
Custodian bank
[edit] Footnotes
^ Holding Your Securities - Get the Facts, United States Securities and Exchange Commission, 03/04/2003. Retrieved 30th November 2006.
A custodian bank as a standing proxy opens accounts at foreign exchange banks and futures companies, deposits and withdrawals investors' money and monitors investors' properties for them.
A custodian bank in the issuer's home country holds the foreign shares. An ADS is traded in U.S. dollars in the U.S. markets, and dividends are paid in U.S. dollars.
DRs are created when a broker purchases a non-UK company's shares in the home stock market and delivers those shares to the depositary's local custodian bank. The custodian then instructs the depositary bank to issue DRs to the investor.
The confirmation of trades, and the reporting of the transaction, may be much slower than in American markets. Finally, shares are often held safe with custodian banks and depositories.
Rules providing for the safekeeping of shares held by custodian banks or depositories may not be as well developed in some foreign markets, with the risk that your shares may not be protected if the custodian has credit problems or fails.
Note that "Dealer 1" and 2 here may be the same dealer, but most likely multiple dealers involved in multiple transactions - selling securities to the Fed as well as lending cash to the Fed. The custodian bank would typically be State Street, ...
Plan completion life insurance: Insurance with an optional feature stipulating that if the planholder dies before completing the contract, a life insurance policy will complete the purchase. The insurance proceeds are paid to the custodian bank ...
A second function of the authorized participant begins when the block of underlying securities have been obtained, that is when the authorized participant must transfer these securities usually to a custodian bank.
 See also: Custodian, Trading, Securities, Market, Stock
  
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