
who prefer to settle the securities trades on a DVP basis in the foreign
currency. The cash-funding requirements will be undertaken as a
separate process. For the client, the advantages are:
䊏 The securities trades benefit from DVP settlement
䊏 The investor is able to take advantage of the global custodian’s
CSDA settlement service
䊏 There are more options available in terms of subsequent use of the
foreign currency balances.
The disadvantages are:
䊏 The increased control and administrative burden as a result of
operating many different currency accounts.
For the global custodian, the implications are:
䊏 A more complete custody and banking service can be ...