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- Global Custody Pro - 08 October 2025
Global Custody Pro - 08 October 2025
UBS, ISLA, Talos and more
Global Custody Pro
October 07, 2025 • Reading Time: 7 minutes
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Welcome to Global Custody Pro, read by custody professionals like you. I'm Brennan McDonald, Managing Editor. I write about the global custody industry, having spent over 12 years in financial services, including working at a global custody bank. An AI voice reads the audio version of this newsletter. Reply to this email with feedback or connect with us on LinkedIn.
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🌏 Global Custody News
UBS Challenges Swiss Capital Rules Impact
UBS Group AG said proposed Swiss capital adequacy regulations would eliminate approximately CHF 11 billion of its group equity as eligible capital, with broader legislative changes requiring around CHF 24 billion in additional CET1 capital. Group CEO Sergio Ermotti and CFO Todd Tuckner outlined the bank's opposition during a conference call focused on its regulatory consultation response, with Sarah Mackey, Head of Investor Relations, moderating the session. The executives argued the proposals are excessive, internationally misaligned, and fail to address actual lessons from Credit Suisse's March 2023 collapse.
The ordinance proposals target capitalised software deductions, deferred tax assets from temporary differences, and prudential valuation adjustments. Tuckner said no peer jurisdiction including the EU, UK, or US applies such extreme treatment to these items, noting UBS's temporary difference DTAs are primarily linked to its core US wealth management business and have proven resilient during financial stress. The bank's current regulatory requirements already result in a true minimum CET1 ratio of approximately 16%, well above international peers, the executives said. At the parent company level, the ordinance would reduce eligible capital by CHF 3 billion or 3%.
The Swiss Federal Council is expected to finalise ordinance changes by mid-2026, with law change consultations concluding early next year and parliamentary deliberations extending into 2027. Implementation is unlikely before 1 January 2027, with a phase-in period expected though not formally confirmed. Ermotti declined to discuss potential mitigating actions including headquarters relocation until greater regulatory clarity emerges, stating the bank's goal remains competing as a global bank from Switzerland with its current business model. The company maintains $20 billion in AT1 capital and $100 billion in loss-absorbing debt as additional buffers.
ISLA Names Ina Budh-Raja as CEO
The International Securities Lending Association announced the appointment of Ina Budh-Raja as its next Chief Executive Officer, effective towards the end of 2025. Budh-Raja joins from BNY, where she held the position of Global Head of Securities Finance Regulatory Strategy, Public Policy and Industry Affairs, focusing on identifying opportunities in a changing regulatory environment.
Budh-Raja brings extensive industry experience, having previously served in both commercial and legal roles at State Street and Deutsche Bank, including as managing counsel for securities finance covering equity finance and money markets desks. She is co-lead of the London chapter of Women in Securities Finance and serves on Bank of England Money Markets and Securities Lending Committees, as well as Co-Chair of the Bank of England UK Money Markets Code Sub-Committee.
In her new role, Budh-Raja will lead the development of ISLA's growth strategy and oversee core activities to build a more transparent, efficient and resilient market reflecting member needs across EMEA. She will work closely with ISLA Americas to provide global advocacy for the industry. Andrew Dyson will continue as CEO during the transition period after 13 years in the role. Concurrent with the appointment, Alessandro Cozzani of Bank of America has assumed the role of Board Chair, with Matthew Neville of State Street appointed Vice-Chair.
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🚀 Digital Asset News
Azvalor launches tokenised fund with instant settlement
Azvalor has launched its first tokenised investment fund with real-time settlement capabilities, marking a structural innovation in the asset management industry. The Azvalor Blockchain FI fund operates within the Spanish National Securities Market Commission's (CNMV) regulatory sandbox, with fund shares registered and stored on a private blockchain network using Allfunds Blockchain's infrastructure. BNP Paribas' Securities Services business acts as depositary bank and fund administrator for the UCITS fund.
The project represents a transformation from traditional fund distribution models by enabling buy-and-sell transactions to execute and settle in real time. This capability delivers faster, more transparent and efficient workflows whilst significantly reducing processing times. Although the fund will not be open to general distribution in this initial phase, selected investors can validate the new operational features under the controlled environment of the regulatory sandbox.
The launch demonstrates how blockchain technology can be applied to enhance fund operations and investor experience. Sergio Fernández-Pacheco, Financial and Operations Director at Azvalor Asset Management, stated the technology will significantly enhance user experience and provide new features and services. Soledad Lecube, Head of Spain at BNP Paribas Securities Services, described real-time operational-flow management as a natural evolution towards a more dynamic and transparent model for clients.
Talos integrates with BlackRock's Aladdin platform
Talos, the institutional digital asset technology provider, announced the integration of its order and execution management system with BlackRock's Aladdin platform, with the integration processing over $1 billion in trading volume during its first week of implementation. The company said the connection enables BlackRock traders to route cryptoasset orders directly through Talos's system whilst managing workflows in real time.
The integration provides BlackRock with access to Talos's advanced algorithmic trading capabilities, smart order routing and connections to centralised exchanges, decentralised finance protocols and over-the-counter dealers. Traders can execute volume-weighted average price and time-weighted average price strategies, as well as leverage request-for-quote workflows for competitive pricing from multiple OTC dealers. Dan Veiner, Head of Markets at BlackRock, said the integration enables the firm to expand and automate its crypto trading capabilities whilst strengthening execution quality.
Anton Katz, CEO and Co-Founder of Talos, said the integration reflects the current state of institutional adoption of digital assets, with traditional firms moving from exploration to execution on their digital asset strategies. Talos said the partnership establishes a foundation for potential future enhancements, noting the company provides portfolio construction and optimisation tools as part of its fully integrated trading and portfolio management system.
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