Sub-custody guide: Spain
Spanish banks are reviewing their network management
strategies, which range from examining their existing correspondent and
custodial bank relationships to looking at proprietary processes and deciding
which non-core functions could be managed in a cost-efficient but risk-averse
manner by a third party. BBVA Institutional Custody refers to the decoupling of
liquidity services from pure custody.
Questions remain on where custody can be core to future
business models in the face of continuing economic uncertainty, increased
regulation and supervision and price compression pressures, says José Maria
Alonso Gamo, managing director RBC Investor & Treasury Services Spain.
“With continued volatility in the equity and FX markets,
increasing demand for improved technology and demand for balance sheets to be
bolstered, we may yet see further consolidation of custodial activity and on
the number of providers in the market.”
Market reform in Spain is picking up speed to ensure that
the market conforms to Emir, pre-T2S settlement scenarios and corporate action
harmonisation, as per the output from the CAJWG (Corporate Action Joint Working
Group), adds Alvaro Camunas, head of Spain, Portugal and Latin America for BNP
Paribas Securities Services.
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