Many ideologies within financial services are built around alliteration. For Sibos 2010, the triumvirate of regulation, rebuilding trust and recovery are the key themes. Recently, Tim Lind of Omgeo spoke about the four Cs of settlement instruction coverage, completeness, currency and correctness.
Andy Osborne, global head of network management at Northern Trust, came up with the healthy supplement of the Seven Cs for network managers, consisting of criteria credit, capability, control, compliance, commitment, continuity planning and cost.
Within Global Custodians 2010 Agent Bank survey, network managers in major markets were asked to place 14 factors in order of importance in appointing a sub-custodian. Twelve different markets were covered by a number of custodians.
Of the seven Cs, capability came out trumps, with an average rating of 2.47 (1 being the most important, 14 the least). Least important was continuity planning, with a rating of 11.26.
Please click here to see the graph.
Here at Sibos, GlobalCustodian.com caught up with a few custodial powerhouses to ask their opinion on what they see as important to network managers:
Standard Chartered: Financial standing, sophistication of regulation, partnership approach, technical ability, quality of service and responsiveness – Giles Elliott, Global Head of Securities Services, Standard Chartered
Consistency of service. Timothy J. Connelly, partner at Brown Brothers Harriman
Expertise, knowledge of market infrastructure and the ability to meet the needs of foreign clients. Ramy Bourgi, head of emerging markets at SGSS.
“In the current risk-focused environment, creditworthiness has to be our No. 1 consideration when appointing a sub-custodian. That would be followed respectively by service capabilities and price.” Beatrice Molina at BNY Mellon Asset Servicing
First is obviously financial security; overall counterparty risk and exposure. You then have operational risk, and efficiency of operation, in terms of our connectivity to that underlying player. Drew Douglas, co-head of HSBC Securities Services
Creditworthiness, risk management, technology and service capabilities. Rob Scott, co-head of global sales and relationship management, Deutsche Bank Global Transaction Banking