Risk Committee

Highlights include:

• Middle East Situation Update: Impact on Post-Trade and Capital Markets.
• Overall Risk Outlook and Operational Risk Outlook “On Watch” for all monitored entities located in the Middle East.
• All ME monitored entities have activated their business continuity and operational resilience frameworks.
• In parallel with kinetic escalation in the region, the cyber threat environment has intensified materially.

Highlights include:

• The SARB broadens its Orderly Closing and Reopening of Markets (OCARM) framework.
• JSE Clear obtains approval to clear cash bonds.
• Namibia officially launches its Central Securities Depository (CSD).
• Changes to the TM cash questionnaire.

Highlights include:

• Learn Thomas Murray’s detailed approach to central counterparty assessment.
• Chile and Hungary reviewed by the RC following market visits.
• Venezuela outlook changed to ‘On Watch’. 

Highlights include:

• First-time scoring of the new MFEX and Clearstream Fund Centre fund platforms.
• Development of revised Securities Lending practices and feasibility for a CCP in Egypt.
• A research and fact-finding visit to Canada reviewed three banks, and took in infrastructure meetings with the regulator, CSD and exchange.
• Montenegro launches OTC platform.

Highlights include:

• A first-time risk assessment for the Macao CSD.
• The Nuam Integration Project to integrate the stock exchanges and market infrastructures of Colombia, Chile, and Peru is progressing steadily.
• A full due diligence visit to Switzerland included a meeting with SIX, the Swiss stock exchange, looking at custody and infrastructure.
• Banks in Lebanon still face significant challenges. 
   

Highlights include:

• Thomas Murray conducts a comprehensive review of sub-custodian banks and market infrastructure across several countries.
• MoU signed by eight Eastern European countries to enhance capital market infrastructure integration.
• Review of asset segregation practices in Costa Rica, and MoU for linking Costa Rica and Guatemala CSDs.
• The National Bank of Ukraine and Securities Commission have advanced regulatory changes to introduce DVP settlement.
   

Highlights include:

• Portugal, Slovenia, and South Korea demonstrate strong financial profiles, with a commitment to regulatory compliance.
• Kenya adopts technology and infrastructure improvements, despite deep political unrest.
• Iceland and Pakistan face risk and regulatory challenges on their path to greater stability.
• Our research highlights the importance of proactive risk management and regulatory compliance to support economic growth.

Highlights include: 

• Argentina: risk landscape remains vulnerable to domestic volatility and external shocks
• Israel: complex mix of risk developments, with geopolitical tensions driving downgrades, partially offset by upgrades in asset servicing and operational controls.
• Turkey: market infrastructure is under close scrutiny, with a particular emphasis on mitigating operational risk and developing regulatory frameworks for digital assets. 

Highlights include: 

• United States: U.S. banks saw their risk outlook upgraded to ‘Stable’ due to strong financials and stable outsourced operations, though asset safety and data protection remain ongoing concerns.
• Mexico: Mexican banks faced operational and financial risk reassessments amid ownership changes, system upgrades, and internal control deficiencies, leading to some risk downgrades.
• Estonia: Estonian banks’ risk assessments were adjusted due to changes in account structures, credit ratings, and operational practices, with particular focus on asset safety and evolving service standards.
• Latvia: Latvian banks experienced asset safety downgrades and increased scrutiny of asset servicing, while compliance issues and regulatory fines kept the risk outlook “On Watch.”
• Lithuania: Lithuanian sub-custodian risk assessments remained stable, with minor updates focused on proxy voting and meeting representation practices.

Highlights include: 

• Bangladesh: Political and economic instability persists, though market reforms and FX stabilisation offer cautious optimism.
• Ivory Coast and Ghana: Regulatory improvements are progressing amid regional uncertainty and infrastructure delays.
• United States: The market remains “on watch” due to policy uncertainty and a federal regulatory freeze.
• Kazakhstan, Bermuda and El Salvador: Risk profiles are under review due to structural changes, transparency concerns, and operational alignment efforts.