Risk Management of Central Security Depositories, Clearing Houses, and Custody Companies (CSDs)

Risk Management of Central Security Depositories (CSDs), Clearing Houses, and Custody Companies

Custody companies, depository and clearing houses and central counterparties play a role in the smooth functioning of financial markets. They provide services, like asset safekeeping and trade settlement. However it is important to recognize that these institutions face risks that can potentially destabilize them and even impact the financial system. Consequently implementing risk management practices…