CSD Risk Assessments

UCITS V is extending depositary bank liability all the way down to settlement level. Thomas Murray Data Services rates over 140 CSDs globally. The key components of assessing a CSD are asset commitment, liquidity and counterparty risks, asset safety and financial risks, asset servicing risk, operational risk and governance and transparency risk.

The purpose of assessing a CSD is to determine the extent to which the depository minimises risk and maximises asset safety for participants and investors. A CSD Risk Assessment assesses the risk exposures for investors in the post trade capital market infrastructure when transactions are settled while securities are held in a particular depository. It assesses the effectiveness of a CSD and the processes used in post-exchange settlement and safekeeping to minimise investor risk exposures.

CSD Risk Assessments can be compared across markets. It should be noted that a CSD Risk Assessment does not assess trade execution risk but the settlement, safekeeping and asset servicing risks after trade execution.

The CSD Risk Assessment evaluates the key procedures required to hold, settle and service securities and includes an analysis of custody, clearing and settlement procedures within a CSD.

Clients who use this product

  • client
  • client
  • client
  • client
  • client

If you would like to purchase this service, or find out more about it, please contact David Dickinson on +44 (0) 20 8600 2300.