Global Custody News - 21 March 2025

📰 Welcome to the Newsletter

Good morning from Global Custody Pro and welcome to all new subscribers! Each week, we break down the most important developments in global custody, clearing, payments, and digital assets - so you don’t have to. Let’s dive into this week’s top stories.

Table of Contents

• 🌏 Global Custody News

• 🚀 Digital Asset News

• 📊 Chart Of The Week

• 📣 Quote of the Week

• 🎧 What We’re Listening To

• 📺 What We’re Watching

🌏 Global Custody News

• The European Securities and Markets Authority (ESMA) and the Bank of England (BoE) signed an updated agreement to enhance cooperation over three UK central counterparties: ICE Clear Europe, LCH, and LME Clear. The revised deal aligns with recent amendments to the European Market Infrastructure Regulation (EMIR) and follows the European Commission’s decision to extend equivalence for UK clearing houses until June 2028. ESMA Chair Verena Ross said the new agreement promotes secure clearing practices in Europe and globally.

• DTCC's National Securities Clearing Corporation (NSCC) will expand clearing operations to support extended U.S. equity trading hours starting in the second quarter of 2026, pending regulatory approval. The new schedule will enable NSCC to provide clearing services continuously from Sunday 8:00 PM ET through Friday 8:00 PM ET, aiming to boost liquidity, reduce risk, and meet growing global investor demand. Major industry groups and exchanges, including SIFMA, Nasdaq, NYSE, and emerging platforms such as 24 Exchange and Cboe, have welcomed the move, citing improved market safety and standardized trading hours.

• Nasdaq and nuam, the combined entity of the Santiago, Lima, and Colombia stock exchanges, extended their strategic partnership, with Nasdaq providing its central securities depository platform to streamline post-trade processes across the three markets. The agreement aims to unify trading and settlement systems, enhance efficiency, improve liquidity, and address longstanding issues like market fragmentation. Nasdaq cited strong investor interest in Latin America, noting that 84% of investors surveyed plan to increase their investments in the region.

• PNGX Group and Fiji's South Pacific Stock Exchange (SPX) issued a joint request for proposal seeking an integrated trading platform and central securities depository system, following their earlier agreement to collaborate on market infrastructure. The exchanges aim to streamline trading, clearing, settlement, and registration to boost efficiency and attract global investors. PNGX Chairman David Lawrence and SPX CEO Sheraj Obeyesekere emphasized the initiative’s importance for strengthening regional capital markets and enhancing investor engagement.

• Luxembourg-based fund services provider Alter Domus has appointed former BlackRock executive and Canada Pension Plan Investment Board CEO Mark Wiseman as Chairman, succeeding René Beltjens, who will stay on the board. Wiseman is expected to lead the company's next growth phase through technology and innovation. Alter Domus, backed by investors Cinven and Permira, has recently expanded its market presence by investing in tech-enabled solutions for fund administration and debt capital markets.

• OCC, the world's largest equity derivatives clearing organization, announced the reappointment of directors Mark Dehnert, Susan Lester, Stuart Bourne (Bank of America), Alicia Crighton (Goldman Sachs), Boudewijn Duinstra (ABN AMRO Clearing U.S.), and Andrej Bolkovic, pending approval at its April 10 annual meeting. Robert Hocking was also appointed Special Advisor to Chairman Craig Donohue, providing strategic support during OCC’s ongoing expansion and the rollout of its new Ovation platform. Chairman Donohue emphasized the significance of experienced leadership in guiding OCC through a critical growth phase for the options industry.

• A report by ISDA and BCG found that 87.1% of companies across seven major global equity indices use derivatives mainly for risk management, liquidity management, and enhancing returns. The study showed that derivatives help firms reduce cash-flow volatility, lower financing costs, boost investment capacity, and mitigate risks from interest rate and currency fluctuations. ISDA emphasized that derivatives support financial stability and enable strategic planning, benefiting both companies and broader economic growth.

• HKEX posted record financial results in 2024, with revenue rising 9% to HK$22.4 billion and profit increasing 10% to HK$13.1 billion, driven by strong trading activity across cash and derivatives markets. Average daily turnover in the Cash Market grew 26%, while Stock Connect trading volumes surged, with Northbound up 39% and Southbound up 55%; derivatives and LME metals contracts traded also rose significantly. HKEX saw robust IPO activity, with 71 listings raising HK$88 billion, and advanced sustainability initiatives by aligning climate disclosures to IFRS S2 standards and achieving operational carbon neutrality.

• UBS confirmed its audited 2024 net profit of $5.085 billion, diluted earnings per share of $1.52, and a CET1 capital ratio of 14.3%, matching earlier unaudited figures. The bank highlighted progress integrating Credit Suisse, emphasizing growth as a global wealth manager and aligning compensation with stakeholder interests. In a separate Sustainability Report, UBS detailed advances in sustainable finance and revised climate goals, aiming for net-zero emissions in operations by 2035. One interesting custody snippet from the full annual report - UBS reclassified $49 billion of “invested assets” to “custody-only” assets as part of the migration of Credit Suisse’s wealth business onto the UBS platform.

• FNZ appointed Anthony Habis as Group Head of Asia Pacific, based in Sydney, to oversee its regional expansion and client relationship strategy. Habis brings over 25 years of wealth and asset management experience from senior roles at Moelis Australia, Bank of New York, Citibank, and NAB. FNZ aims to use his expertise to strengthen existing partnerships and pursue new growth across its Asia-Pacific client base, including Colonial First State, NAB, and UOB Asset Management.

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🚀 Digital Asset News

• CME Group announced the first trades of its Solana (SOL) cryptocurrency futures contracts, marking a new step in institutional crypto adoption. The initial block trade involved FalconX and StoneX executing both micro-sized (25 SOL) and larger-sized (500 SOL) contracts, aiming to meet institutional demand for regulated digital asset products. CME emphasized strong early support from market participants, highlighting the contracts' potential for efficient hedging and investment strategies.

• BX Digital became Switzerland’s first financial market infrastructure to receive conditional FINMA approval for a Distributed Ledger Technology (DLT) trading facility, a milestone for the country's digital asset market. The platform, part of Boerse Stuttgart Group, allows direct settlement of tokenised assets on a public blockchain, using Swiss francs integrated with the Swiss National Bank’s payment system for secure, intermediary-free transactions. BX Digital has attracted interest from banks and issuers and views this approval as critical for developing a broader European digital issuance and settlement network.

• Acting SEC Chairman Mark Uyeda called for restoring transparency and thoroughness to the agency's rulemaking, criticizing past shortcuts that resulted in legal challenges. Speaking at the 2025 Investment Management Conference, Uyeda suggested reconsidering rules on client asset custody, especially involving cryptocurrencies, and ESG disclosures, indicating potential delays or revisions. He emphasized flexibility to foster innovation in ETFs and retirement products, advocating collaboration with other regulators to ensure effective investor protection and reduce litigation risks.

📊 Chart Of The Week

📣 Quote of the Week

🎧 What We’re Listening To

📺 What We’re Watching

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