Thomas Murray is the leading provider of technology, data, risk analysis and expertise to Global Network Management teams. We transform the Network Management process with purpose-built technology, real-time market data and unique, authoritative risk analysis. Over the past 25 years, we have built a reputation as the go-to provider for custodian banks ready to modernise.
Today we support 80% of top-tier Global Custodian Banks with:
The Post-Trade Experts
Thomas Murray’s coverage of post-trade capital markets is second to none. With validated data from a global network of support banks we provide intraday updates to clients, informing our analysts’ unique and authoritative risk assessments on post-trade trade capital markets and their participants.
Securities Market Information
Intraday data on 100+ markets globally, giving banks real-time oversight of their invested markets. The data covers local rules, regulations, systems, and procedures. Clients can manage their exposure to local markets with timely updates on trading, clearing and settlement, custody, and asset servicing arrangements.
- Constant monitoring of 100+ Securities markets globally
- Intraday data sourced from our huge network of local banks
- Validated against 250 sources & issued by Thomas Murray analysts
The data underpins custody banks’ global operations and risk management.
Cash Market Information
Interactive data on payment and treasury operations across 100 markets. Treasury and payments operators receive continuous updates and newsflashes to be kept informed local market practices globally, including:
- Market regulations, entry requirements and legal frameworks
- FX trading rules, Domestic Payment Operations, Money Markets and Liquidity Facilities
- Benchmarking rates
Clients use the structured and timely data to enable faster and better risk assessments of markets where they or their clients are operating.
Market Asset Safety Risk Assessments
The Risk: European regulation such as AIFMD and UCITS V, aiming to protect assets in collective investment vehicles, have made Depositary Banks risk concentrators in the European funds industry. In particular, banks are now required to demonstrate to their fund clients that they understand and monitor capital market risk – in particular, assessing the way in which funds’ assets are held and are recoverable in the event of a default or crisis.
The Solution: Thomas Murray provides a comprehensive overview of the factors surrounding the protection of client assets in invested markets. Our Market Asset Safety Risk Assessments (MASRA) provide investors with assessments of each market in terms of relative risks of loss of assets in the connect of AIFMD and UCITSV.
The assessment includes elements of Country Risk: the natural, political, and financial environment that could directly or indirectly trigger loss of principal and the risk of a state defaulting on its debt. It also covers local market processes and risks in the capital market infrastructure and sub-custody arrangements affecting the safekeeping of underlying securities.
Markets are graded from AAA to CCC.
Capital Market Infrastructure Risk Assessments
The Risk: Institutional Investors are exposed to a wide range of risks when they invest in foreign markets. These risks go beyond exposures to a local custodian bank, a CSD or a fund administrator. In fact, they include a range of risks that are not routinely intermediated or indemnified by any of these institutions, including:
- Lack of simultaneous delivery against payment
- Breakdowns in critical systems
- Entitlements lost because of inadequate information about a corporate action or an AGM
The Solution: Thomas Murray provides an independent assessment of the risk of the safekeeping, transaction settlement, and asset servicing processes in a market, based on a comprehensive assessment of the post-trade risks in that market.
The assessments, from AAA to CCC, measure the extent to which the infrastructure and processes in a market minimise the exposure of investors to eight primary risks:
- Asset Commitment
- Counterparty Risk
- Financial Risk
- Asset Safety
- Asset Servicing
- Operational Risk
- Governance and Transparency
With this service, institutional investors are continuously updated on their post-trade exposure across their invested markets.
CSD Risk Assessments
The Risk: Central Securities Depositories (CSDs) are the central mechanisms for holding and transferring securities in every market in the world. In many cases they are bastions of stability and strengthen a financial market, but they can also pose significant risks to the financial system.
The Solution: Thomas Murray provides intraday monitoring and risk assessments of 140+ CSDs globally. We enable banks and other groups exposed to CSDs to understand the risks they pose, benchmark them against other markets and against best practices globally. Our analysts are experts in CSD risk, including:
- Asset Commitment
- Asset Safety
- Asset Servicing
- Governance & Transparency
Thomas Murray rates every CSD from AAA to C according to its capabilities, its operational infrastructure and its willingness and ability to protect participants and their clients from losses.
There are two primary use-cases for these assessments:
- Proprietary: where direct and indirect users of a CSD access the assessments for their own use, and they are not published publicly. Users of a CSD include Custody Banks, Broker Dealers, and Institutional Investors.
- Public: where a CSD commissions a rating on itself and makes it publicly available.
In addition to CSD Risk Assessments, Thomas Murray provides Cyber Security Ratings and ESG assessments of every CSD globally.
CCP Risk Assessments
The Risk: Central Counterparties (CCPs) have a systemically important role in resolving many of the issues that triggered the 2007 global financial crises, both in clearing OTC derivatives markets and domestic cash markets. Every CCP has its own way of operating, different margin models, risk waterfalls, financial, ownership and governance models.
- What happens to your collateral contribution in the event of a default?
- What happens to your open positions?
- If a major participant at the CCP goes into default, how quickly does your collateral come under threat?
These questions and others are hugely important for deciding which CCP(s) best fits investor needs. There is huge potential for systemic risk in CCPS and the consequences of failure could be very serious for clearing members, their clients, and the wider market.
The Solution: Thomas Murray has addressed the global regulatory and risk imperative to assess and monitor CCPS as risk concentrating vehicles. CCP Risk Assessments assess the extent to which a CCP manages your risk burden. There are two key benefits:
- Every assessment brings transparency to the industry for the benefit of users
- Using Thomas Murray provides cost savings to regulated firms that are required to perform due diligence and risk assessments on CCPs
Thomas Murray assesses risks at CCPs across six categories:
- Counterparty Risk
- Asset Safety
- Financial Risk
- Operational Risk
- Governance & Transparency
The Risk: Network Management teams are responsible for managing their banks’ global network of agent banks. Understanding and monitoring these sub-custodians, who are engaged by Global Custodians to support clients’ foreign investments, is an operational, risk and regulatory requirement. Managing these complex global networks is time-consuming, costly and requires significant expertise – and was made no easier by the Covid-19 pandemic rendering on-the-ground due diligence impossible.
The Solution: 80% of Global Custodian banks partner with Thomas Murray to support their Network Management. Thomas Murray provides continuous support for Bank Network Management teams, assessing over 360 sub-custodian banks in 95 markets globally. The service assists banks in meeting regulatory (CASS, AIFMD, UCITS V), fiduciary, client and internal obligations, and our unique model enables banks to share the costs of this monitoring with other Thomas Murray clients.
All agent banks are subject to annual due diligence utilising the industry standard AFME Due Diligence questionnaire and supplemented by Thomas Murray’s key risk questions. Thomas Murray’s analysts perform on-site operational reviews to validate these responses, ensuring their accuracy and reliability.
Global Custodian Monitoring
The Risk: Institutional Investors appoint Global Custodians for their fund administration and accounting, settlements, and corporate actions across multiple assets classes: equities, bonds, cash, derivatives, hedge funds, real estate, and private equity. Global Custodians support investment across markets and appoint sub-custodians (agent banks) in markets where they do not have a presence. Choosing and reviewing global custody arrangements is a critical task that Institutional Funds undertake regularly, but opaque fee structures, lack of transparency and a disinclination to move assets can leave Funds underserved and over-charged.
The Solution: Thomas Murray’s Fund Advisory team are experts in Securities Services. They carry out consulting engagements, benchmarking reviews and RFP processes for Asset Owners and Asset Managers to find the best possible global custody arrangements, and to ensure they are compliant with their counterparty evaluation, selection, and monitoring requirements.
Over 25 years Thomas Murray’s advisory business has firmly established itself as the world leading practice in the Custody industry, and today it monitors more than $1 trillion of client assets.
If you are an Asset Owner or Asset Manager looking to select, benchmark or monitor your Global Custodian, contact us to discuss your requirements.
Transfer Agents, Fund Administrators & Others
The Risk: Depositary Banks, Fund Management Companies and others need to protect investors’ data and assets by proactively monitoring their service providers. Regulations such as AIFMD & UCITS V require banks to perform due diligence over a fund’s organisation, procedures, and controls, as well as its service providers. At the same time, UCITS Management Companies and Alternative Investment Funds (AIFs) are under increasing pressure in Europe to monitor delegated activities such as transfer agency, fund distribution, administration, accounting, investment management, IT services and others.
The Solution: Thomas Murray eases the burden on banks and funds whatever their requirements, with an industry-leading suite of software solutions, managed services, and expert risk assessments.
AIFMD & UCITS V Compliance
- Launched in 2014, Thomas Murray’s leading solution for Depositary Banks
- Experts risk analysis of markets and third parties, with ratings & benchmarking
- Reporting for management and regulators
Managed Due Diligence for Funds
- Launched in 2021, a managed oversight and due diligence solution for Fund Management Companies
- Risk-based approach in line with Circular 18/698
- Expert analysis of all key service providers
- Central Administrators
- Portfolio Managers
- Depositary Banks
- IT Service providers
- Investment Advisors
- Investment Managers
Transfer Agent Monitoring
- Transfer Agents present significant risks to fund managers and depositary banks, and are an area of focus for regulators
- Thomas Murray monitors 1000+ transfer agents globally across 50 markets
- We track clients’ exposures with KPIs and ratings, driving transparency and resilience
Contact us about solution for Funds & Depositary Banks
Digital Asset Service Providers
The Risk: Banks are increasingly required by investors to support investment in Digital Assets such as cryptocurrencies. Some banks have made the decision to enter the digital asset class, while others have announced that they will not; many more have this on their ‘roadmap’ but are delaying due to lack of knowledge, low risk appetites and lack of institutional-grade providers in the market. The problem for many is knowing which of the many emerging digital asset service providers to work with.
The Solution: We believe that digital asset risk should be limited to the success or failure of an instrument, not the operations and support investment. Thomas Murray Digital is the first operational risk solution focused exclusively on the servicing and safekeeping of digital assets. Launched in 2021, it provides banks and institutional investors – assets managers, hedge funds, asset owners and others – with the information and analysis they need to invest confidently in this growing asset class.
Thomas Murray Digital provides trusted, independent validation of service providers – including exchanges, custodians, and technology providers – ensuring that their capabilities and operational safety are fully understood and satisfy investors’ requirements throughout the lifecycle.
Subscribe to Thomas Murray Digital’s newsletter to receive the latest news, opinion, and analysis on the institutional digital asset sector.
To find out more about Thomas Murray Digital, please contact us.
Third-Party Risk Management Technology
As well as our comprehensive solution for Network Management teams, Thomas Murray has a suite of third-party risk management technology to support banks, funds and other companies manage their own service providers, clients, and others:
A due diligence and RFP platform for issuing questionnaires, analysing responses and reporting to management in an easy and intuitive workflow. Safe time, money, and manual effort by adopting an automated approach.
Launched in 2021, an automated, AI-powered threat intelligence and security ratings platform. The tool uses AI to discover an organisation’s public-facing network footprint (‘attack surface’) and monitors it continuously for new breaches, vulnerabilities and other issues that could exposed it to hackers. Every company’s security is rated from 0-1000 and benchmarked against peers, and no manual effort is required. Find out more here, or explore our two use-cases:
Enterprise Cyber Risk: 50% of cyber-attacks emerge through companies’ third parties. Monitor your supply chain, clients, partners and software providers with objective Security Ratings, benchmarking against peers and rapid remediation steps. Escalate with Thomas Murray to improve providers’ security and build resilience in your supply chain.
Third-Party Cyber Risk: monitor your service providers & measure the security of potential collaborations and acquisitions.
On online solution for managing counterparty banking relationships, associated account details, documentation, and integrated market intelligence. A centralised repository of counterparty data with daily newsflash alerts, with the option to customise flashes for internal and external communication.