Custody in Europe: a gateway to new efficiencies

Custody model choice in Europe is about more than market access. In a region that still spans 41 CSDs across 36 countries, firms need to assess how access structure affects cost, resilience and long-term operating efficiency.

How should firms approach custody model choice across Europe? What trade-offs emerge between agent bank, investor CSD and ICSD models as post-trade pressures continue to evolve?

The report compares the three main access models and examines how each one affects cost, complexity and control across Europe’s fragmented post-trade landscape. It looks at where settlement inefficiency, capital drag and tax complexity still create friction, and what firms need to consider as T+1, digital assets and regulatory change reshape market infrastructure.

The research, developed in partnership with BNP Paribas, highlights:

• How the three main custody models differ in practice: Agent Bank, Investor CSD and ICSD structures each create different trade-offs across access, control and resilience

• Where fragmentation still creates friction: settlement inefficiency, capital drag and tax complexity continue to shape the total cost of regional custody

• Why total cost of ownership matters: model choice affects not only direct cost, but also the wider operating structure behind regional access

• What future market change means for custody strategy: firms need to assess how T+1, digital assets and regulatory developments may alter model suitability over time

• Why custody architecture is becoming more strategic: for firms reassessing regional access, operating model choice is increasingly tied to efficiency, resilience and long-term post-trade design