A central securities depository (CSD) is a specialized financial organization holding
securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any fo ...
shares In financial markets, a share is a unit of equity ownership in the capital stock of a corporation, and can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Share capital refers to all of the shares ...
, either in certificated or uncertificated ( dematerialized) form, allowing ownership to be easily transferred through a
book entry Book entry is a system of tracking ownership of securities where no certificate is given to investors. Several terms are often used interchangeably with "book entry" shares including "paperless shares", "electronic shares", "digital shares", "digi ...
rather than by a transfer of physical certificates. This allows
brokers A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be confu ...
and financial companies to hold their securities at one location where they can be available for clearing and
settlement Settlement may refer to: *Human settlement, a community where people live *Settlement (structural), the distortion or disruption of parts of a building *Closing (real estate), the final step in executing a real estate transaction *Settlement (fina ...
. This is usually done electronically, making it much faster and easier than was traditionally the case where physical certificates had to be exchanged after a trade had been completed. In some cases these organizations also carry out centralized comparison, and transaction processing such as clearing and settlement of securities transfers, securities pledges, and securities freezes.


A CSD can be national or international in nature, and may be for a specific type of security, such as
government bond A government bond or sovereign bond is a form of bond issued by a government to support public spending. It generally includes a commitment to pay periodic interest, called coupon payments'','' and to repay the face value on the maturity d ...

Domestic central securities depository

Many countries have one domestic CSD that was traditionally associated with the national stock exchange. These organizations are typically heavily regulated by the government and may or may not be separate from the exchanges where trading in securities occurs.

International central securities depository (ICSD)

An international CSD is a central securities depository that settles trades in international securities such as eurobonds although many also settle trades in various domestic securities, usually through direct or indirect (through local agents) links to local CSDs. Examples of international CSDs include
Clearstream Clearstream is a financial services company that specializes in the settlement of securities transactions and is owned by Deutsche Börse AG. It provides settlement and custody as well as other related services for securities across all asse ...
(previously Cedel),
Euroclear Euroclear is a Belgium-based financial services company that specializes in the settlement of securities transactions, as well as the safekeeping and asset servicing of these securities. It was founded in 1968 as part of J.P. Morgan & Co. to settl ...
and SIX SIS. While viewed as a national CSD rather than an ICSD, the US Depository Trust Company (DTC) does hold over $2 trillion in non-US securities and in American depositary receipts from over 100 nations.


* Safekeeping Securities may be in dematerialized form, book-entry only form (with one or more "global" certificates), or in physical form immobilized within the CSD. * Deposit and withdrawal Supporting deposits and withdrawals involves the relationship between the transfer agent and/or issuers and the CSD. It also covers the CSD's role within the
underwriting Underwriting (UW) services are provided by some large financial institutions, such as banks, insurance companies and investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liabil ...
process or listing of new issues in a market. * Dividend, interest, and principal processing, as well as corporate actions including proxy voting Paying and transfer agents, as well as issuers are involved in these processes, depending on the level of services provided by the CSD and its relationship with these entities. * Other services CSDs offer additional services aside from those considered core services. These services include securities lending and borrowing, matching, and repo settlement, or ISIN assistance. * Pledge - Central depositories provide pledging of share and securities. Every country is required to provide legal framework to protect the interest of the pledger and pledgee. However, there are risks and responsibilities regarding these services that must be taken into consideration in analyzing and evaluating each market on a case-by-case basis. exchange-handbook.co uk article
on the risks associated with Depositories, at the ''Handbook of world stock, derivative and commodity exchanges'' website.

See also

* Clearing house *
Custodian bank A custodian bank, or simply custodian, is a specialized financial institution responsible for providing securities services. It safeguards assets of asset managers, insurance companies, hedge funds, and is not engaged in "traditional" commercial ...
* Securities market participants (United States)


External links

; CSD Associations
Asia Pacific Central Securities Depository Group

European Central Securities Depositories Association

America's Central Securities Depositories Association

Association of Eurasian Central Securities Depositories

Africa & Middle East Depositories Association
; National CSDs
Argentinian CSD

Armenian CSD

Oman CSD

Austrian CSD

Azerbaijan CSD

Bangladesh CSD

Bahrain CSD

Belgian CSD

Bosnian and Herzegovian CSD

Brazilian CSD for equities

Brazilian CSD for coporporate bonds

Brazilian CSD for government securities

Bulgarian CSD

Canadian CSD

Chilean CSD

Chinese CSD

Croatian CSD

Cypriot CSD

Czech CSD

Danish CSD

Egyptian CSD

Estonian CSD

Finnish CSD

French CSD

German CSD

German CSD for government securities

Greek CSD

Greek CSD for government securities

Hungarian CSD

Icelandic CSD

Indian CSD 1

Indian CSD 2

Indonesian CSD

Iranian CSD

Irish CSD

Israeli CSD

Italian CSD

Japanese CSD

Latvian CSD

Lithuanian CSD

Macedonian CSD

Maldivian CSD

Maltese CSD

Mexican CSD

Mongolian CSD

Moroccan CSD

Nigerian CSD

Norwegian CSD

Pakistani CSD

Polish CSD

Portuguese CSD

Qatar CSD

Romanian CSD

Romanian CSD for government securities

Russian CSD

Serbian CSD

Singapore CSD

Slovak CSD

Slovenian CSD

South African CSD (GraniteCSD)

South African CSD

South Korean CSD

Spanish CSD

Sri Lankan CSD

Swiss CSD

Tunisian CSD

Turkish CSD

Ukrainian CSD


Uruguayan CSD


Venezuelan CSD

Zimbabwean CSD
{{div col end ; International CSDs
Euroclear Bank

Clearstream Banking Luxembourg, CBL


Payment systems Securities (finance) Central securities depositories Financial law