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Global Custody Pro - 30 May 2025

Global Custody Pro - 30 May 2025

Northern Trust, Alter Domus, ISDA, Cantor and a request for comments

Global Custody Pro
May 29, 2025 • Reading Time: 7 minutes

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📰 Welcome to the Newsletter

Welcome to Global Custody Pro! I'm Brennan McDonald, Managing Editor. I write about the global custody industry after 12+ years in financial services, including working at a global custodian. An AI voice reads the audio version of this newsletter. Have feedback? Just reply to this email or connect with us on LinkedIn.

📠 Editor’s Comment

I’d be interested in hearing from readers about how their 2025 is going - what are you seeing? What are you not seeing? What sort of stories aren’t being covered? You can reply to this email and let me know.

📠 Editor’s Comment
🌏 Global Custody News
🚀 Digital Asset News
- Cantor Bitcoin Financing Arm Operational

🌏 Global Custody News

Fixed Income Drives Northern Trust Outsourced Trading Growth

Driving the news: Northern Trust's Integrated Trading Solutions (ITS) outsourced trading business reported a client base increase of nearly 17% from year-end 2023 to the end of the first quarter of 2025, propelled by greater demand for fixed-income outsourced trading and asset managers aiming to reduce costs. The company stated its ITS fixed-income trading volume quadrupled in the U.S. and doubled in EMEA over the last three years.
The big picture: This growth reflects asset managers and asset owners increasingly utilising outsourced trading to "meaningfully lower costs, reduce risk, manage regulatory compliance and enhance transparency and operational efficiency," as stated in the announcement.
Go deeper: Northern Trust is committed to ongoing expansion and delivering "tailored outsourced trading experiences," according to Amy Thorne, Head of Integrated Trading Solutions, EMEA. The firm also highlighted its growth in the APAC region. It continued development in fixed income trading, aiming to assist clients with "advanced trading technology, regional expertise, and experienced traders," as Rob Arnott, Head of Brokerage, Asia Pacific, noted.

Charlotte Hogg Appointed Alter Domus CEO

Driving the news: Alter Domus has appointed Charlotte Hogg as Chief Executive Officer, effective mid-summer. Ms. Hogg, formerly CEO of Visa Europe and Deputy Governor and COO of the Bank of England, succeeds Doug Hart, who has served as CEO since 2019.
The appointment, along with Mark Wiseman's as Chairman, "underscores Alter Domus’ ambitious vision and commitment to driving innovation for private markets asset managers and their investors worldwide," as the company seeks to "cement its position as the leading service partner to alternative asset managers."
Ms. Hogg stated her focus will be to build on the established "strong and resilient platform," adding that Alter Domus’s "commitment to delivering technological innovation, outstanding client experience and private markets know-how will make the business an invaluable partner for asset managers as they continue to scale and expand their offerings." Mr. Hart will remain with Alter Domus in an advisory capacity as Vice-Chair of Debt Capital Markets.

ISDA: Q1 Derivatives Trading Surges

Driving the news: Interest rate derivatives (IRD) traded notional surged 46.1% to $127.4 trillion in Q1 2025 from Q1 2024, while index credit derivatives notional (CFTC-reported) jumped 95.8% to $5.3 trillion. Trade counts also rose, by 23.3% for IRD and 28.9% for index credit derivatives.
Why it matters: The year-over-year increases in reported notional for both IRD and index credit derivatives were "influenced by revised block and cap thresholds by the Commodity Futures Trading Commission (CFTC), which took effect on October 7, 2024", leading to "higher disclosed traded notional from the fourth quarter of 2024" and a "structural increase in reported notional." This change offers expanded visibility into trading activity.
Go deeper: While major index credit derivatives (CDX, iTraxx Europe) showed over 99% clearing rates, the overall percentage of cleared (80.8% of notional ) and SEF-traded (78.7% of notional ) index credit derivatives declined from Q4 2024. This was due to increased disclosure of typically non-cleared, off-SEF "other" products under the revised CFTC rules.

Source: ISDA

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🚀 Digital Asset News

Cantor Bitcoin Financing Arm Operational

Driving the news: Cantor's Bitcoin Financing Business is fully operational and executed its initial transactions throughout May. According to the announcement, the business "expects to make available up to $2 billion of financing in its initial phase" and provides leverage to institutional investors who hold Bitcoin.
The big picture: According to Christian Wall, co-chief executive officer and global head of fixed income at Cantor, the initiative aims to "unlock capital and deliver sophisticated financing solutions for institutional Bitcoin investors.“ The business intends to bring "scale, structure, and sophistication to the digital asset industry" and support institutional clients' liquidity needs.
Go deeper: Cantor has partnered with digital asset custodians Anchorage Digital and Copper.co to "safeguard client assets with their proven security architecture," indicating a focus on security for its institutional digital asset services. Brandon Lutnick, Chairman of Cantor Fitzgerald, stated this achievement "further solidifies our position as a leading investment bank for crypto and digital asset clients."