Country risks

This section summarises information on the asset’s relative standing regarding country, infrastructure, legal, institutional and compliance risks. Here we consider such metrics as the country’s investor framework, how the asset is traded (OTC vs exchange-traded, the presence and quality of the CCP and CSD, the relative strength of pre-trade and post-trade infrastructure such as, for example, clearing houses and depositaries, centralised or not, etc.), the presence of compliance or legal risks when trading or safekeeping the asset or exercising of the rights connected to the asset (e.g., the right to rightfully and freely own the asset and receive cash flows in the stated currency, which could be impaired by sanctions or capital controls, for example), and general institutional and legal environment and standard business practices to protect the rights of the investor who owns this asset (e.g., voting, dilution, information disclosure).