Domestic CSDs Working Group

Purpose

The Working Group’s purpose is to research the key challenges and issues that impact the Domestic CSDs i.e. those who mainly serve their local market and international flows into that market. The aim will be to provide ideas and best practice guidance which may be applicable to the local market. Each market has unique regulations and all the guidance must be tailored into practical steps for the market. Through the adoption of the best practices, and the resulting improvements, the Domestic CSDs Working Group can assist the Securities Services industry in improving the client outcomes, reducing the risk and increasing the efficiency of the local markets.

Scope

Current in scope topics for 2023 under consideration include:

• Remote Network Due Diligence (including signatures on physical documentation)
• Best practices for local markets on how (where of interest) they can efficiently open up to foreign investors, as well as the processes they need to have in place.

Key Deliverables

Remote Network Due Diligence

• Create a straw-man of actions that need to be performed for Due Diligence
• Based on the list of actions design methodologies that can optimise remote due diligence
• Engage with AFME, WFC and ACG on potential collaboration

Opening markets to Foreign Investors

• Outline the key challenges that currently exist in foreign entity access
• Create a paper highlighting the key challenges and providing recommendations for a way forward

Key Outcomes

Key outcomes will be two papers on the above topics which can be syndicated across the industry.

Publications

• Article ” Domestic – CSD- Due Diligence”, August 2023 > PDF
• Article on “The Domestic CSD and Resilience”, March 2022 > PDF
• Article on “The Domestic CSD and Remote Working”, March 2022 > PDF

Working Group Chair

• Dale Connock, Strate
• Catherine Tinavapi, Standard Chartered Bank

Executive Sponsor

• Colin Parry, ISSA

Institutions represented by Experts in the Working Group

• Americas’ Central Securities Deposiitories Association ACSDA
• B3 Brazilian Exchange and OTC
• Central Securities Clearing System, Nigeria
• Central Securities Depository, Ghana Limited
• Datos Insights
• Deposito Central de Valores, (DCV)
• Depozitarul Central S.A.
• Deutsche Bank AG
• Deutsche Börse Group
• Euroclear
• Euronext Securities – VP Securities
• Hong Kong Exchanges and Clearing Limited
• ISSA
• Macao Central Securities Depository and Clearing Limited
• Nasdaq Inc.
• National Securities Depository Limited, (NSDL) India
• Standard Chartered Bank
• Strate (Pty) Ltd
• The Bank of New York Mellon Corporation
• The Standard Bank of South Africa
• The Stock Exchange of Thailand
• U.S. Bank N.A.
• UBS Group AG