Securities services, which includes custody and asset servicing, collateral management and fund administration, is a stable business. Since 2010 it has averaged 3% revenue growth year on year, according to McKinsey.
This is impressive given the regulatory onslaught the industry has faced since the global financial crisis. The Markets in Financial Instruments Directive II, European Market Infrastructure Regulation, Central Securities Depositories Regulation, Securities Financing Transaction Regulation and Shareholder Rights Directive II (SRD II) – to name just a few – have a common aim of increasing transparency, accountability and safety in the financial markets.
