Risk Committee

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.

Highlights include: 

• Oman's Financial Landscape Improves: Oman's financial sector is undergoing significant improvements, driven by new initiatives and operational enhancements.  
• Vietnam's Market Upgrade: Vietnam's market aims to be upgraded from Frontier to Emerging Market in September, with the implementation of a non-prefunded trading model and new clearing system.  
• Portugal's Financial Sector Strengthens: Portugal's financial sector is strengthening, driven by strong financial performance and upgrades by major credit agencies, with a positive trajectory expected.  
• European Countries Show Resilience: European countries such as Spain, Slovakia, and the UK are showing resilience and adaptability in the face of challenges, with a focus on risk management, cybersecurity, and operational resilience

Highlights include: 

• Global capital markets experienced turbulence in January, led by a decline in the tech sector. 
• The emergence of China's AI start up DeepSeek sparked fears of disruption, affecting US and European markets. 
• Investors are monitoring policy decisions and technological innovations shaping the global financial landscape.

Highlights include: 

• In a market dominated by public securities, Dominican Republic's CEVALDOM introduced a fails management arrangement.
• Kazakhstan’s KASE Clearing Center is a new CCP, focusing on operational resilience and technological capabilities.
• Global markets are adjusting to potential U.S. rate cuts, European economic concerns, and mixed signals in Asia.

Highlights include: 

• Switzerland explores T+1 settlement and leads in digital asset infrastructure.
• Morocco advances Securities Lending, Central Counterparty (CCP), and digital asset regulation.
• Trump wins US election; Republican control spans Congress, boosting markets.
• US stocks rise; small-cap and value stocks show strong potential.

Highlights include: 

• Nigeria overtakes South Africa as Africa's largest economy 
• Egypt secures a $35 billion investment from UAE's ADQ 
• The role of automation in post-trade operations