Investigating the role of the sub-custodian in risk mitigation and who bears the sub-custodian risk

Schnaitt, Günter

Practice paper

Investigating the role of the sub-custodian in risk mitigation and who bears the sub-custodian risk

Günter Schnaitt

Journal of Securities Operations & Custody, 7 (2), 107-112 (2015)

https://doi.org/10.69554/SWGL3780

Abstract

The article investigates the role of a sub-custodian in risk mitigation. New regulations change the role of depositories and consequently the role of sub-custodians as well. This article follows some of the developments in oversight functions and liability in this field, highlighting changes in liability regimes for CSD, the difference between investor and issuer CSD and ways that subcustodians can play a major role in the chain of intermediaries. The article highlights some of the developments, such as T2S, and discusses different options and consequences.

Keywords: AIFMD; UCITS; Depository; CSD; Target 2 Securities; risk mitigation; liability; sub-custodian

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Citation

Schnaitt, Günter (2015, February 1). Investigating the role of the sub-custodian in risk mitigation and who bears the sub-custodian risk. In the Journal of Securities Operations & Custody, Volume 7, Issue 2. https://doi.org/10.69554/SWGL3780.