Product Overview

Thomas Murray Data Service’s Securities service enables market participants to assess and monitor the risks taken when investing in foreign markets. Network managers and prime brokers can track these risks on behalf of their clients; white labelled versions of these reports can be made available to end clients through the MarketFlow service.

The Data and Risk reports comprise:

The risks covered include inefficiencies, weaknesses or failures of a sub-custodian, a central counterparty clearing house (CCP), a central securities depository (CSD), or a payments network.

They also encompass the risk of losing entitlements such as dividends, interest payments, tax reclaims and the right to subscribe to an IPO, new issue or takeover offer because of inadequate information and missed deadlines or a failure to adhere to local market practices.

Subscribers enjoy online access to a continuously updated database of assessments and authenticated information about securities markets, CSDs, CCPs, payment systems and market law, regulation and practice in over 100 markets around the world. Subscribers are notified by email of all significant news events that may result in alterations in risk in any market.

Why it Matters

Researching information on global markets for securities investment and keeping it updated is highly resource intensive. Banks, Broker/Dealers, Risk, Compliance and Treasury Officers, and various other institutions use Thomas Murray Data Services's information guides because no other single online resource offers such a cost-effective, comprehensive and efficient method of buying validated market data, supporting market timing arbitrage opportunities and calculating a critical path for collateral funding.

White Label Option

Today, over 30 leading financial groups white label the Thomas Murray market intelligence and newsflashes. They use them both for internal operational use as well as externally with clients. We support these groups by hosting a fully rebranded version of our web-based data management platform, MarketFlow, and allowing clients to rebrand our reports and emails under licence. Users can access the information (which can be any combination of Thomas Murray/bank maintained data) directly from your website via SSO or other simpler integration techniques.

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What is market infrastructure?

Transactions in securities involve more than buyers, sellers and their banks. Moving cash and securities means using inter-bank payment systems, some of which settle transactions in “central bank money” (i.e. between accounts at the central bank) and some of which settle transactions in “commercial bank money” (i.e. between accounts at commercial banks).
These payment systems are part of the infrastructure that buyers, sellers and their agents use to exchange cash and securities. While cash moves between bank accounts, securities are moved – in the vast majority of jurisdictions - between accounts at a CSD.
Most securities are no longer held in physical form, but are “dematerialised” and held in digital form. So CSDs, too, are part of the infrastructure that buyers, sellers and their agents use to exchange cash and securities.
Even before securities that are purchased or sold leave or land in an account at a CSD, they may pass through a CCP. CCPs reduce the risk parties to a trade pose one another.
This makes CCPs part of the infrastructure too. While payments systems, CSDs and CCPs are designed to reduce the level of risk in securities trading, they do not eliminate it completely. Indeed, it is as important for investors to understand the differences between the procedures, practices and policies of different parts of the infrastructure in different markets as it is for them to understand the risks posed by the custodian banks they use.

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What sort of risks does market infrastructure pose for an investor?

In any securities transaction, the buyer takes the risk that the seller will not deliver the securities; the seller takes the risk that the buyer will not deliver the cash.
Infrastructure is designed to reduce that risk, but both payment systems and CSDs can still oblige investors to relinquish control of securities before receiving cash and vice versa. This is why market participants advocate simultaneous delivery of securities against cash payment, or what is commonly abbreviated to “delivery versus payment” (DvP).
Losing control of an asset for a time is not the only risk posed by infrastructure. CCPs do not eliminate counter-party risk, they merely mitigate it by asking members to subscribe to a fund and to post collateral against their commitments.
There is a risk that these resources will be insufficient to cover the losses accruing to investors if a major counterparty fails. A CSD may also go bankrupt, or cause an investor to miss a valuable corporate action. Then there are also the risks common to all forms of infrastructure: systems failure, incorrect entry of information, human error, terrorist attacks, natural disasters and so on. It is important for investors to understand how the different parts of the infrastructure in each market manage these risks.

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Why are those risks not covered by custodian banks?

Most investors rely on a global custodian but it is the sub-custodians that settle trades on behalf of global custodians in local markets, through the accounts they maintain with local payments systems and CSDs – and global custodians do not cover sub-custodian risk.
A typical global custody contract provides that the customer bears the risk of loss arising from the use of sub-custodians, who have no contractual relationship with the underlying investor. If a local CSD does not offer DvP, it is hard to maintain that the sub-custodian is liable for losses when a counterparty fails to deliver cash or securities.
This is the most important single reason why it is essential for investors to understand the processes and procedures by which payment systems and CSDs operate in local markets, and how they change over time.

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How can market infrastructure risks be managed?

Thomas Murray Data Services understands the design, ownership, structure, processes and procedures of 147 CSDs in 96 markets around the world, which it publishes in the form of depository service risk assessments.
It publishes – and continuously updates – detailed Securities Market Profiles, or guides to the local market systems, laws, regulations, rules, processes and procedures for the trading, clearing, settlement and custody of securities in more than 100 markets.
Thomas Murray Data Services also prepares Capital Market Infrastructure Risk Assessments, which assess the riskiness of local capital market infrastructures using the familiar AAA to CCC ratings scale. Investors can subscribe on-line to all three of these services. A subscription package includes a daily surveillance service, in which any changes affecting risks posed by local market infrastructures are communicated to subscribers in the form of a news flash.

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How does Thomas Murray Data Services obtain its information about local market infrastructures?

Thomas Murray Data Services analysts visit local markets regularly. They also maintain relationships with over 200 banks, CSDs, CCPs, exchanges and payments systems, supplying Thomas Murray Data Services with detailed information about their own markets.
This information is verified and normalised by Thomas Murray Data Services and used to inform Securities Market Profiles, depository risk assessments and Capital Market Infrastructure Risk Assessments.

What markets are covered by the Thomas Murray Data Services Market Information Guides?

Securities Market Information

C&E Europe

W Europe

Africa

Asia/Pacific

Middle East

Americas

Armenia
Azerbaijan
Bosnia and Herzegovina
Bulgaria
Croatia
Cyprus
Czech Rep
Estonia
Georgia
Hungary
Kazakhstan
Latvia
Lithuania
Montenegro
Poland
Romania
Russia
Serbia
Slovakia
Slovenia
Ukraine

Austria
Belgium
Denmark
Finland
France
Germany
Greece
Iceland
Ireland
Italy
Luxembourg
Malta
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
UK

Botswana
Egypt
Ghana
Kenya
Malawi
Mauritius
Morocco
Namibia
Nigeria
South Africa
Swaziland
Tanzania
Tunisia
Uganda
WAEMU
Zambia
Zimbabwe

Australia
Bangladesh
China 
Hong Kong
India
Indonesia
Japan
Korea (South)
Malaysia
New Zealand
Pakistan
Philippines
Singapore
Sri Lanka
Taiwan
Thailand
Vietnam

Bahrain
Israel
Jordan
Kuwait
Lebanon
Oman
Palestine
Qatar
Saudi Arabia
Turkey
UAE

Argentina
Bermuda
Bolivia
Brazil
Canada
Chile
Colombia
Costa Rica
Ecuador
El Salvador
Jamaica
Mexico
Panama
Peru
Trinidad & Tobago
U.S.A.
Uruguay
Venezuela

 

Central Securities Depository

C&E Europe

W Europe

Africa

Armenia - CDA
Azerbaijan - NDC
Bosnia and Herzegovina - RVP (BiH)
Bosnia and Herzegovina - CRS (Srpska)
Bulgaria - BNB
Bulgaria - CDAD
Croatia - SKDD d.d.
Cyprus - CDCR
Czech Rep – CDCP (CZ)
Czech Rep - SKD
Estonia - Estonian CSD
Georgia - GCSD
Hungary - KELER
Kazakhstan - KACD
Latvia - LCD
Lithuania - CSDL
Montenegro - CDA
Poland - KDPW
Poland - NBP
Romania - NBR
Romania - Central Depository S.A
Russia - NSD
Serbia - CSD&CH 
Slovakia - CDCP
Slovenia - KDD
Ukraine - SSD
Ukraine - NDU

Austria - OeKB
Belgium - Euroclear Belgium
Belgium - NBB
Denmark – VP
Euroclear (Euroclear Bank)
Finland - Euroclear Finland
France - Euroclear France
Germany - CBF
Greece - BOG
Greece - ATHEXCSD
Iceland - Nasdaq CSD
Ireland - Euroclear Ireland
Ireland - Euroclear UK & Ireland Ltd
Italy - Monte Titoli
Luxembourg - Clearstream Banking
Luxembourg - Luxembourg - LuxCSD
Malta - Malta CSD
Netherlands - Euroclear Nederland
Norway - VPS
Portugal - Interbolsa
Spain - Iberclear
Sweden - Euroclear Sweden
Switzerland - SIX SIS
UK - Euroclear UK & Ireland

Botswana -CSDB
Egypt - MCDR
Ghana - Ghana CSD
Kenya - CBK
Kenya -CDSC
Mauritius - BOM
Mauritius - Mauritius CDS
Morocco - Maroclear
Nigeria - CSCS
South Africa - STRATE
Tunisia - Tunisie Clearing
Uganda - Bank of Uganda
WAEMU - DCBR
Zambia - BoZ
Zambia – LuSE SCD
Zimbabwe - CDCL

 

Asia/Pacific

Middle East

Americas

Australia - ASX Settlement
Australia - Austraclear
Bangladesh - CDBL
China - CSDC Shanghai Branch
China - CSDC Shenzhen Branch
Hong Kong - CMU
Hong Kong - HKSCC
India - NSDL
India - CDSL
India - RBI
Indonesia - Bank Indonesia
Indonesia - KSEI
Japan – Bank of Japan
Japan - JASDEC
Korea (South) - KSD
Malaysia - MyClear
Malaysia - BMDSB/BMSCSB
Maldives - MSD
New Zealand - NZCDC
New Zealand - NZCSD
Pakistan - SBP 
Pakistan - CDC
Philippines - BTR
Philippines - PDTC 
Singapore - CDP
Singapore - MAS
Sri Lanka - CBSL
Sri Lanka - Sri Lanka CDS
Taiwan - TDCC
Thailand - TSD
Vietnam - VSD

Bahrain -Bahrain - CSD
Israel - TASECH
Jordan - SDC
Kuwait - KCC
Lebanon - CBL
Lebanon - Midclear
Oman - MCD
Palestine - Palestine CDS
Qatar - QCSD
Saudi Arabia - Tadawul
Turkey – CBT
Turkey - MKK
UAE - NASDAQ Dubai
UAE - DFM
UAE - ADX

Argentina – CVSA/MERVAL
Bermuda - BSD
Bolivia - EDV
Brazil - CETIP
Brazil - BM&FBOVESPA
Brazil - SELIC
Canada - Canada CDS
Chile - DCV
Colombia – Colombia DCV
Colombia - DECEVAL
Costa Rica - INTERCLEAR
Dominican Republic - CEVALDOM
Eastern Caribbean - ECCSD
El Salvador - CEDEVAL
Jamaica - JCSD
Mexico – INDEVAL
Nicaragua - CENIVAL
Panama - LATINCLEAR
Peru - CAVALI
Trinidad & Tobago - TTCD
Trinidad & Tobago - TTCB
U.S.A. - DTC
U.S.A. – Federal Reserve
Uruguay - CBU
Venezuela - CVV
Venezuela - BCV

 

Capital Market Infrastructure Risk Assessments

C&E Europe

W Europe

Africa

Asia/Pacific

Middle East

Americas

Bulgaria
Croatia
Cyprus
Czech Rep
Estonia
Hungary
Kazakhstan
Latvia
Lithuania
Poland
Romania
Russia
Serbia
Slovakia
Slovenia
Ukraine

Austria
Belgium
Denmark
Finland
France
Germany
Greece
Iceland
Ireland
Italy
Luxembourg
Malta
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
UK

Botswana
Ghana
Kenya
Mauritius
Namibia
Nigeria
South Africa
WAEMU
Zambia
Zimbabwe

Australia
Bangladesh
China
Hong Kong
India
Indonesia
Japan
Korea (South)
Malaysia
New Zealand
Pakistan
Philippines
Singapore
Sri Lanka
Taiwan
Thailand
Vietnam

Bahrain
Egypt
Israel
Jordan
Kuwait
Lebanon
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Tunisia
Turkey
UAE

Argentina
Bermuda
Bolivia
Brazil
Canada
Chile
Colombia
Costa Rica
Jamaica
Mexico
Panama
Peru
U.S.A.
Uruguay
Venezuela

 

Sub-Custodian Monitoring

Africa Americas Asia Pacific Eurasia Middle East EU
Botswana
Ghana
Ivory Coast
Kenya
Mauritius
Namibia
Nigeria
South Africa
Swaziland
Tanzania
Uganda
Zambia
Zimbabwe
Argentina
Bermuda
Brazil
Canada
Chile
Colombia
Costa Rica
Ecuador
Mexico
Peru
Uruguay
USA
Venezuela
Australia
Bangladesh
China
Hong Kong
India
Indonesia
Japan
Korea (South)
Malaysia
New Zealand
Pakistan
Philippines
Singapore
Sri Lanka
Taiwan
Thailand
Vietnam
Bosnia
Kazakhstan
Russia
Serbia
Ukraine
Bahrain
Egypt
Israel
Jordan
Kuwait
Lebanon
Morocco
Oman
Qatar
Saudi Arabia
Tunisia
Turkey
UAE
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Italy
Latvia
Lithuania
Malta
Netherlands
Norway
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
Switzerland
UK

Central Counterparty Risk Assessments

Europe

Asia/Pacific

Africa & Middle East

Americas

- CC&G
- CME Clearing Europe
- Eurex Clearing AG
- ICE Clear Europe
- LCH Ltd
- SIX x-clear
- LCH SA
- Nasdaq OMX
- BME Clearing

- ASX Clear (Futures) Pty Ltd
- Hong Kong Securities Clearing Corp Ltd (HKSCC)
- Japan Securities Clearing Corporation (JSCC)
- Korea Exchange (KRX)
- The Clearing Corporation of India Ltd (CCIL)
- Hong Kong Futures Exchange (HKFE) (HKCC)
- The Central Depository (Pte) Limited (CDP)
- Bursa Malaysia Derivatives Clearing Bhd
- TAIFEX
- SGX-DC

- JSE-Clear
- Tel Aviv Stock Exchange Clearing House (TASECH)
- DCCC

- CDCC
- CME Clearing (CME)
- ICE Clear Credit
- The Options Clearing Corporation (OCC)
- ICE Clear U.S.
- Asigna
- Contrapartos Central de Valores (CCV)

 

Derek Duggan portrait

If you would like to purchase this service, or find out more about it, please contact Derek Duggan at dduggan@ds.thomasmurray.com or telephone him on +44 (0) 20 8600 2300.

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