Central Securities Depository (CSD) Risk Assessments

Thomas Murray IDS has entered into an arrangement with Thomas Murray Data Services - the market leader in the provision of specialist market and risk assessment information to the securities services industry - to provide specialist data and assessments to the investor community.

The following risk assessment and information products can be made available to investors:

Central Securities Depository (CSD) Risk Assessments: Structured against a set of market defined risks, the Depository Risk Assessments evaluate the related risks of CSDs associated with local market transaction processing for operational and planned equity and fixed income depositories. Current coverage of approximately 147 CSDs globally.

What information does a typical depository risk assessment contain?

The goal of a depository risk assessment is to assess the risks posed to the safety of assets by CSDs.This is why each assessment focuses on the risks associated with the processing of securities transactions through a CSD.

The service measures eight separate risks:
  1. Asset Commitment Risk: the period when cash or securities are in a CSD, but not yet exchanged
  2. Liquidity Risk: that the exchange of cash and securities will fail because the cash or securities are not available
  3. Counterparty Risk: that a counterparty defaults on its obligations
  4. Asset Safety Risk: that assets held in custody at the CSD may be lost or misappropriated, either due to a default or an omission, misuse, or breakdown of controls (legal, operational or other)
  5. Asset Servicing Risk: that the value of entitlements is lost because of error or failure by a CSD
  6. Financial Risk: that the CSD suffers catastrophic financial failure
  7. Operational Risk: that operational shortcomings by the CSD cause loss to users
  8. Governance and Transparency Risk: that a participant may incur a loss arising from the depository not acting according to its rules and regulations or not providing full and accurate information on its activities and the activities of the market.

Select the links below to learn more about each module:

If you would like to purchase this service, or find out more about it, please contact: Thomas Krantz at tkrantz@ids.thomasmurray.com or telephone him on +44 (0) 20 8600 2300