Thomas Murray Data Services has launched a suite of products and has been working with a number of depositary banks to provide a total risk solution to ensure depositary bank compliance with the Alternative Investment Fund Managers Directive (AIFMD).
"Thomas Murray Data Services already delivers post-trade risk monitoring for over 65 global banking groups, more than 25 of which act as depositary banks," says Simon Thomas, chief executive of Thomas Murray Data Services. "We are in ongoing discussions with many more throughout Europe, each one obliged under AIFMD to monitor its own post-trade infrastructures and counterparty exposures in accordance with the depositary bank liability under AIFMD."
Thomas Murray Data Services provides depositary banks with comprehensive monitoring of their custodian banks (global and/or sub-custodian banks), transfer agents, prime brokers and other third parties that they are exposed to such as cash correspondents and collateral agents. This uses Thomas Murray Data Services' financial market infrastructure (FMI), capital market infrastructure and counterparty risk assessments.
"Monitoring of a bank's entire post-trade network is a time consuming and complicated process, as a lot of depositary banks are realising in their efforts to comply with AIFMD," says Thomas. "Many are choosing to utilise the services that firms such as ours provide. The Thomas Murray Data Services total risk solution provides a robust solution to a regulatory headache for banks and removes the time and much of the cost of conducting market and counterparty monitoring processes in-house."
The group has recently expanded its suite of information services to include AIFMD Market Profiles. Covering over 100 markets globally, these profiles cover everything from a country's propensity to natural disaster and civil unrest, to the risks inherent in its FMI. Also included are information and news flashes on local rules and market practice, general economic indicators, legal and regulatory frameworks, local market administration organisations, market entry requirements and asset safety.
Depositary bank liability under AIFMD covers assets in custody held by its network, including third party global custodians, sub-custodians, prime brokers, collateral agents and transfer agents for units in funds, and stipulates strict restitution for any loss of assets occurring in this network.