Governance is the process of decision making amongst members of any community of interest. Its two main purposes are i) to enable the business model and its objectives and ii) to support compliant business execution while mitigating risks. The Governance Framework entails the Governance Body and its mandated Committees that define and control how decisions are made, and a Technology and Legal Framework that enforces compliance with governance decisions.

The Operating Framework is a result of ongoing governance decisions that also get reflected in the Technology and Legal Framework. The Operating Framework includes Operating Standards for three components: 1) Financial Services (standardized data, integration points, and processes), 2) Shared Services (required for the compliant and resilient operation of the infrastructure), and 3) Services Allocation (enable competitive and efficient allocation of ongoing service needs).

Financial Institutions that would like to offer their securities services to the member network or extend the benefits of the network to Issuers and Investors must operate a technology node or appoint a hosting provider that operates a node for multiple members to gain access to the Utility’s infrastructure. There is no central operator of the infrastructure. Cost of operating a node depends on the scope of services a provider would like to cover.

Financial Institutions that would like to take advantage of the new infrastructure must contract with the legal entity representing the Utility, i.e. the (not-for-profit) Company. By contracting with the Company the party enters into a Membership Agreement that allows it to engage in business with all connected members, consuming services for their own needs or their clients’ needs. Under the Membership Agreement, members can also offer their services - subject to a minimum SLA.