Rule 17f-7 is the new buzz word in emerging markets custody. Not exactly catchy, the new rule will 'address the custody of investment assets outside the United States' and 'establish new standards governing the maintenance of an investment company's assets with a foreign securities depository'.

This latest contribution to custody regulations by the Securities and Exchange Commission promises to place an even greater premium on information flows and infrastructure in the emerging markets. Although one or two custodians are complacent ('it only formalises what we already do'), others are stepping up their surveillance of central depositories and risk.