How is the custody landscape changing?

Taking Europe as an example

Custody

Infrastructure change

  • Settlement harmonisation

    A single settlement day and a harmonised settlement process

  • Central Bank money

    The ability to centralise settlement funding from a single Central Bank

  • Reduced settlement cycle

    Shorter, uniform settlement cycles increasing operational efficiencies

Regulatory change

  • Investor protection

    More liabilities in the intermediary chain and segregated structures

  • Risk reduction

    A reduction in risk from the securities industry is leading to business model change

  • Asset mobility

    Higher capital requirements and a need to utilise more eligible assets

  • Liquidity optimisation

    Regulatory pressure to reduce liquidity exposure to providers

  • Transparency

    Regulatory reporting requirements to ensure transparency of service provided

Client value add services

  • Best execution

    Overcome the proliferation of exchange platforms and increasing costs associated with providing best execution to clients

  • Market visibility

    High infrastructure costs in local markets impacting market visibility to clients and counterparties

  • Local market expertise

    Market proximity and expertise resulting in best-in-class deadlines

  • Global reach

    A single point of access for managing global assets to reduce complexity