Global custody giant HSBC is shutting down its U.S. fund administration business and will service some of the accounts out of Ireland, according to several media reports.

The unit, part of HSBC Securities Services, provides fund accounting and other middle and back office services to hedge funds and other institutional fund managers. About 200 staffers in New York could be laid off with a final decision to be made within the next six to nine months.

The decision follows HSBC's recent sale of its network of retail branches in upstate New York. The bank has said the US market is key for investment and corporate banking activities. Ireland is favored among many fund administrators for its low corporate tax rate and tech savvy work force.

Written by Chris Kentouris, Editor in chief (Chris can be contacted through Chris.Kentouris@hotmail.com)

 
State Street Corp., one of the world's largest custodian banks, has lost a bid to dismiss a lawsuit from an Arkansas pension fund that it overcharged on its foreign currency trades.
 

 
ISIS Fund Services, a Bermuda-headquartered hedge fund administrator, has installed a technology platform from Linedata to expand the portfolio analytics available to its clients.
 
 
 

 
Equity derivatives trailed interest rate and credit default swaps when it comes to post-trade automation, according to a study just released by the International Swaps and Derivatives Association.
 

Broker-dealers outsourcing their middle and back-office operations will soon have to follow a tad more rigorous requirements from the Financial Industry Regulatory Authority in establishing procedures and controls for how they manage their service providers.

Chicago headquartered global custodian Northern Trust says it has installed an enterprise data management platform from London-based Cadis in its worldwide investment operations outsourcing unit.

Wells Fargo is branching into prime brokerage through the acquisition of Merlin Securities for an undisclosed pricetag.