Regulatory requirements sound like a chore, but they often hold business opportunities.
We help you turn legislation into innovative services. Take the Central Securities Depository Regulation (CSD Regulation), for example. What does this have to do with you? More than you might think: Anyone who trades securities will have to deal with the regulation, and the rules differ depending on the type of security and the trading venue. A central securities depository (CSD) is an entity that stores financial instruments such as stocks or bonds for holders or their banks, respectively, and provides ancillary services. If a seller defaults on a transaction with a CSD, he or she will also be subject to sanctions in the future if the transaction is not conducted via a central counterparty (CCP), such as a clearing house. In addition, market participants from the EU must appoint a neutral buy-in agent as an alternative supplier of the security in the event of default. Participants working with an external buy-in service comply with this legal obligation and mitigate any penalties.
Do you operate a global depository with a large network of depositories? Then you could also act as a buy-in agent for the traders and brokers among your clients.