Global Custody Services

The State of Arkansas, through the Treasurer of State's Office, is seeking proposals for global custody services to manage its investment portfolio valued at approximately $9.5 billion. The successful contractor will be responsible for settling up to 10,000 security transactions annually, safekeeping the total portfolio, and completing up to $1.5 billion in daily cash settlement trades. Key requirements include robust reporting, auditing, disaster recovery, and business continuity capabilities. The contract will be awarded for an initial term of up to four years, with the option to renew for up to three additional one-year terms. Proposals are due by July 25, 2022, and the anticipated award date is August 22, 2022. Pricing will be negotiated during the discussions phase, and the state reserves the right to reject unacceptable pricing structures.

The solicitation does not specify any set-aside designations or restrictions on the types of organizations that can respond. The incumbent provider, Bank of America, is terminating its custody line of business, requiring the state to replace the provider within 120 days. The state is open to considering alternative approaches to business recovery procedures. While no budget range is provided, the significant scale of the assets under management suggests this is a high-value, long-term contract opportunity.