Regulators worldwide are tightening the screws on how money moves, who reports what, and how clean those transactions really are, which pushes custody banks and securities administrators into the spotlight. This shift can open doors or close them, depending on where you are positioned. In this article, you will see three stocks from the Global Custody Banks and Securities Administrators screener that appear positively exposed to these changes and why each might deserve a closer look.
The three stocks covered below are just a sample, since the full screen surfaced 46 more custody and securities services companies with equally compelling narratives that are not broken out in this article. To identify your own highest conviction ideas in this niche, head straight into the Global Custody Banks and Securities Administrators screener to filter and analyze the full list.
Allfunds Group (ENXTAM:ALLFG)
Allfunds Group plugs directly into the theme of post-trade plumbing, running the pipes that link fund houses and distributors through custody-like infrastructure, reporting tools and wealth management workstations for institutional clients, and is currently valued at about €5.6b.
Allfunds Group is one of the purest expressions of this screener’s focus, because its platform is built around the same fund administration and reporting tasks regulators are now tightening across the industry.
“Significant increase in demand for open architecture and cross-border fund distribution is accelerating, with Allfunds’ market share rising to nearly 30% and structural penetration of open architecture at 58% across Europe. This positions the company to capture incremental net flows and revenues as the long-term shift from traditional, siloed models continues.”
What happens if the cost of keeping that infrastructure ahead of rising complexity and competition starts to bite harder into future profitability?
If that question is on your mind, the full narrative for Allfunds Group explains how regulatory complexity, platform scale and economics could be pulling in different directions.
London Stock Exchange Group (LSE:LSEG)
London Stock Exchange Group is a heavyweight in market plumbing for this screener, wiring together trading venues, clearing, settlement and compliance data. Most of its £8.7b in revenue comes from Data & Analytics at about £4.4b and Markets at £3.7b, with a market value near £39.4b.
For the custody and reporting theme, London Stock Exchange Group matters because it does not just host trading. It also supplies much of the data, analytics and post trade wiring that global institutions lean on when rules tighten and regulators demand more transparency from capital flows.
