JPMorgan to outsource $500 bln custody business in Hong Kong, Taiwan - sources

JPMorgan Chase (JPM.N) is set to outsource the operations of its local custody business in Hong Kong and Taiwan with Citigroup (C.N), HSBC (HSBA.L) and Standard Chartered (STAN.L) in the race for the mandate, two sources with knowledge of the matter said.

The Wall Street bank, the world's third-largest global custodian, is in the process of selecting another bank to take over the local custodian operations in Hong Kong and Taiwan, said the sources.

Financial details of the deal were not immediately known.

Local custody business takes care of transactions and runs the book for clients when they access certain markets. Global custody, in contrast, manages cross-border investments with a vast network and holds relationships with clients.

JPMorgan has around $520 billion worth of client assets under custody (AUC) as a local custodian in those two North Asian markets, said a third source with direct knowledge of the matter.