FSG flags Basel gaps, Northern Trust and more

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Table of Contents

• 🌏 Global Custody News

  • FSB flags Basel gaps, nonbank finance risks

  • Northern Trust Wins Osmosis Netherlands Mandate

• 🚀 Digital Asset News

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🌏 Global Custody News

FSB flags Basel gaps, nonbank finance risks

Financial Stability Board Chair Andrew Bailey warned G20 leaders that implementation of post-crisis Basel III banking reforms remains significantly incomplete, according to an interim monitoring review delivered to finance ministers in October. The FSB said it will examine where implementation gaps occurred and make recommendations to strengthen monitoring processes, as member countries have not achieved full, timely and consistent adoption of the global standards.

Bailey highlighted growing financial stability concerns related to nonbank financial intermediation, including increased leverage in government bond markets and the expansion of private credit to an estimated $2 trillion globally. The organisation noted that private assets remain opaque and require continued assessment due to their scale and interconnections with the banking system, particularly as the form and significance of bank-nonbank linkages evolve.

Looking ahead, the FSB said cross-border payments remain slow and expensive despite some progress, with national policies including capital controls constraining advancement towards G20 targets. The organisation will prioritise work on stablecoins and digital payment forms in its upcoming programme, emphasising the need for consistent regulatory frameworks across jurisdictions to support safe innovation whilst maintaining public trust in payment systems.

Northern Trust Wins Osmosis Netherlands Mandate

Northern Trust announced on 17 November that Osmosis Investment Management NL B.V. has appointed the firm to provide middle office support services. The mandate includes investment operations outsourcing, collateral management, and currency management for the Netherlands-based sustainable fixed income manager.

Osmosis NL is an affiliate of UK-based Osmosis Investment Management UK Limited and member of the Osmosis Group of Companies. Clive Bellows, head of Europe, Middle East and Africa at Northern Trust, said the firm is proud to strengthen its collaboration with Osmosis to support their growth in the Netherlands. Albert Wisgerhof, COO and CFO of Osmosis NL, cited Northern Trust's flexibility, scale, and technology as key selection factors.

Northern Trust provides fund administration, global custody, investment operations outsourcing, and data solutions to global investment managers across asset classes. As of 30 September 2025, the firm had assets under custody/administration of $18.2 trillion and assets under management of $1.8 trillion. Automated currency management solutions are offered through Northern Trust's Global Foreign Exchange business.

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🚀 Digital Asset News

ClearToken Adopts Nasdaq Clearing for Digital Assets

ClearToken and Nasdaq announced that ClearToken has adopted Nasdaq Eqlipse Clearing technology to support its digital asset clearing and settlement service. ClearToken's CT Settle service, which recently received authorisation from the UK Financial Conduct Authority, will provide delivery-versus-payment and netting capabilities for digital assets and fiat currencies, including cryptoassets and stablecoins.

The technology addresses settlement risk and capital inefficiency in digital asset markets, where bilateral trading conducted on an unnetted basis requires market participants to prefund the total transaction amount before entering trades. Steve Briscoe, Chief Information Officer of ClearToken, stated the service allows financial institutions to net settlement exposures and settle digital assets with reduced settlement risk. Nasdaq's cloud-native clearing platform supports real-time, multi-asset clearing and risk management for both traditional and digital markets, with 24/7 processing capabilities.

ClearToken is developing a full central counterparty clearing house for digital assets that would connect multiple trading venues, custodians and settlement systems. The company is also developing digital depository capabilities within the Bank of England's Digital Securities Sandbox and preparing its CT Clear service as a recognised clearing house, subject to regulatory approvals from the Bank of England and planned recognition from the CFTC in the United States and the FSRA in the Abu Dhabi Global Market.

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