Earlier this month, Euroclear UK & Ireland (EUI) issued a consultation to participants concerning their proposals to enhance the US dollar settlement arrangements in the CREST system, and make relevant changes to CREST documentation. Thomas Murray wholeheartedly supports these proposals.

As regards the CSDs (central securities depositaries) and depositary banks, where are the risks for the depositaries in assuming strict liability for the restitution of assets of their underlying fund clients in the case of lost assets at a CSD? How likely is this to even happen?

The T+2 settlement cycle will be intmroduced across Europe during 2014. We look at the ins and the outs; the pros and the cons.

CSDs (Central Securities Depositories) started as entities designed to reduce risk in the market by centralising the holding of securities. Originally, a CSD’s core service was to provide safekeeping and custody of stocks, as securities were held in physical or certificated form which required it to maintain large vaults with sufficient controls in place to minimise the risk of loss or theft. As markets grew and developed, however, CSDs expanded the range of services to support the back-office activities derived from trading, such as the clearing and settlement of transactions.