A central securities depository (CSD) is a specialized financial market infrastructure organization holding securities such as shares or bonds, either in certificated or uncertificated ( dematerialized) form, allowing ownership to be easily transferred through a book entry rather than by a transfer of physical certificates. This allows brokers and financial companies to hold their securities at one location where they can be available for clearing and settlement. In recent decades this has usually been 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. In modern corporate debt markets, investors achieve collateralization through CSDs. The CSDs operate as trustees for the owners of the security whereby the collateral is stored and automatically transferred to the lenders in case of non-performance.

History

The first recorded CSD was the Wiener Giro- und Cassen-Verein in

Vienna Vienna ( ; ; ) is the capital city, capital, List of largest cities in Austria, most populous city, and one of Federal states of Austria, nine federal states of Austria. It is Austria's primate city, with just over two million inhabitants. ...

, established in 1872. Also in 1872, the introduced a CSD-like service (), discontinued it two years later, and revived it on a permanent basis in 1882. Similarly named institutions subsequently spread in Germany, and under the German occupation of France, also to

France France, officially the French Republic, is a country located primarily in Western Europe. Overseas France, Its overseas regions and territories include French Guiana in South America, Saint Pierre and Miquelon in the Atlantic Ocean#North Atlan ...

in the early 1940s. The

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

adopted the CSD model with the creation of the

Depository Trust Company Depository Trust Company (DTC), founded in 1973, is a New York City, New York corporation that performs the functions of a central securities depository as part of the US National Market System. DTC annually settles transactions worth hundreds ...

in 1973 following coordinated initiatives of the financial industry in the late 1960s. In the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...

, the CREST project was only initiated in 1993, leading to the 1996 creation of

CRESTCo Euroclear UK & International is a UK-based central securities depository that holds UK equities and UK gilts. It operates the CREST system, whose name stands for Certificateless Registry for Electronic Share Transfer. Originally known as CRESTCo ...

as the country's first CSD. The development of the eurobond market in the 1960s led to the first so-called international CSD or ICSD in the form of the Euroclear System initially developed by the

Morgan Guaranty J.P. Morgan & Co. is an American financial institution specialized in investment banking, asset management and private banking founded by financier J. P. Morgan in 1871. Through a series of mergers and acquisitions, the company is now a subsidi ...

branch in

Brussels Brussels, officially the Brussels-Capital Region, (All text and all but one graphic show the English name as Brussels-Capital Region.) is a Communities, regions and language areas of Belgium#Regions, region of Belgium comprising #Municipalit ...

, started in 1968 and reorganized in late 2000 as

Euroclear Bank Euroclear Bank is the international central securities depository (ICSD) of the Euroclear Group, based in Brussels, Belgium. It is one of the world's two main ICSDs, the other one being Clearstream Banking SA in Luxembourg. As of 2018, it was t ...

. In reaction, a group of other banks in 1970 founded a competing entity in nearby

Luxembourg Luxembourg, officially the Grand Duchy of Luxembourg, is a landlocked country in Western Europe. It is bordered by Belgium to the west and north, Germany to the east, and France on the south. Its capital and most populous city, Luxembour ...

, initially called

Cedel Clearstream Banking SA is one of two world-leading international central securities depositories, the other one being Euroclear Bank. It is a fully-owned subsidiary of the Clearstream Group, itself part of Deutsche Börse Group. History The C ...

and rebranded in 2000 as

Clearstream Banking SA Clearstream Banking SA is one of two world-leading international central securities depositories, the other one being Euroclear Bank. It is a fully-owned subsidiary of the Clearstream Group, itself part of Deutsche Börse Group. History The ...

. At least initially, Euroclear was viewed as largely aligned with

buy side Buy-side is a term used in investment banking to refer to advising institutions concerned with buying investment services. Private equity funds, mutual funds, life insurance companies, unit trusts, hedge funds, and pension funds are the most c ...

interests whereas Cedel was closer to the

sell side Sell side is a term used in the financial services industry to mean providing services to sell securities. Firms or institutions on this side include investment banks, brokerages and market makers, who facilitate offering securities to investors, ...

Scope

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 (finance), bond issued by a government to support government spending, public spending. It generally includes a commitment to pay periodic interest, called Coupon (finance), coupon payments' ...

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

(previously Cedel),

, and SIX SIS. While viewed as a national CSD rather than an ICSD, the US

(DTC) does hold over $2 trillion in non-US securities and in American depositary receipts from over 100 nations.

Functions

* 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 liability ...

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 In finance, securities lending or stock lending refers to the lending of securities by one party to another. The terms of the loan will be governed by a "Securities Lending Agreement", which requires that the borrower provides the lender with co ...

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.

Regional and global bodies

CSDs have formed five regional associative bodies with partly overlapping membership: for example, the Central Securities Depository of Turkey (, MKK) is an associate member of ECSDA and a full member of ACG, AECSD and AMEDA. The five associations, in turn, have formed a global body, the World Forum of Central Securities Depositories.

European Central Securities Depositories Association

The European Central Securities Depositories Association (ECSDA), based in

, was established in November 1997 by 13 founding members. As of early 2025, ECSDA had 32 full members and 8 associate members. * OeKB CSD *

Euroclear Belgium Euroclear Belgium is one of three central securities depositories (CSDs) in Belgium, together with Euroclear Bank and NBB-SSS. It is the main CSD for Belgian securities other than government bonds. Both Euroclear Belgium and Euroclear Bank are fu ...

* Central Depository AD (CDAD) * SKDD *

Cyprus Stock Exchange The Cyprus Stock Exchange or CSE (, is a stock exchange located in Cyprus. It is a public-sector entity under the direct control of the Cypriot government. History CSE was established under the Cyprus Securities and Stock Exchange Law which provid ...

(CSE) * CSD Prague (CDCP) * Euronext Securities Copenhagen * Euroclear Finland * Euroclear France * Clearstream Banking AG * ATHEXCSD * KELER * Verðbréfamiðstöð Íslands (VBM) * Euronext Securities Milan * Nasdaq CSD *

* LuxCSD *

Malta Stock Exchange The Malta Stock Exchange (), known as the Borża ta' Malta, is the stock exchange of the island nation of Malta. Established in 1992, it is fully owned by the Maltese government. The Malta Stock Exchange has been key to the raising of capital f ...

(MSE) * Single Central Securities Depository (DCU) * CSD & CC Montenegro * Euroclear Nederland * Euronext Securities Oslo * KDPW * Euronext Securities Porto * Depozitarul Central * CDCP SR * KDD Central Securities Clearing Corporation * Iberclear * Euroclear Sweden * SIX SIS * Euroclear UK & International Associate members as of early 2025 were the Registry of Securities (RVP) and Central Registry of Securities JSC Banja Luka (CR HoV RS) in

Bosnia and Herzegovina Bosnia and Herzegovina, sometimes known as Bosnia-Herzegovina and informally as Bosnia, is a country in Southeast Europe. Situated on the Balkans, Balkan Peninsula, it borders Serbia to the east, Montenegro to the southeast, and Croatia to th ...

; AIX CSD and KCSD in

Kazakhstan Kazakhstan, officially the Republic of Kazakhstan, is a landlocked country primarily in Central Asia, with a European Kazakhstan, small portion in Eastern Europe. It borders Russia to the Kazakhstan–Russia border, north and west, China to th ...

; Central Securities Depository AD Skopje in

North Macedonia North Macedonia, officially the Republic of North Macedonia, is a landlocked country in Southeast Europe. It shares land borders with Greece to the south, Albania to the west, Bulgaria to the east, Kosovo to the northwest and Serbia to the n ...

; National Depository of

Ukraine Ukraine is a country in Eastern Europe. It is the List of European countries by area, second-largest country in Europe after Russia, which Russia–Ukraine border, borders it to the east and northeast. Ukraine also borders Belarus to the nor ...

(NDU); Central Securities Depository and Clearing House (CR HoV) in

Serbia , image_flag = Flag of Serbia.svg , national_motto = , image_coat = Coat of arms of Serbia.svg , national_anthem = () , image_map = , map_caption = Location of Serbia (gree ...

; and the Central Securities Depository of

Turkey Turkey, officially the Republic of Türkiye, is a country mainly located in Anatolia in West Asia, with a relatively small part called East Thrace in Southeast Europe. It borders the Black Sea to the north; Georgia (country), Georgia, Armen ...

(MKK).

Asia-Pacific Central Securities Depository Group

The Asia-Pacific Central Securities Depository Group, or Asia-Pacific CSD Group (ACG), was also formed in November 1997. As of early 2025, its membership was as follows. *

Australian Securities Exchange Australian Securities Exchange Ltd (ASX) is an Australian public company that operates Australia's primary Exchange (organized market), securities exchange, the Australian Securities Exchange (sometimes referred to outside of Australia as, or c ...

(ASX) *

Bursa Malaysia Bursa Malaysia (English: Malaysian Bourses or Malaysia Exchange) is the stock exchange in Malaysia. It is one of the largest bourses in ASEAN. It is based in Kuala Lumpur and was previously known as the Kuala Lumpur Stock Exchange (KLSE). It p ...

Depository (Bursa Depository) * Bursa Malaysia Securities Clearing (BMSC) * Central Depository Bangladesh Limited (CDBL) * China Central Depository & Clearing (CCDC) *

China Securities Depository and Clearing Corporation China Securities Depository and Clearing Corporation Limited ( zh, 中国证券登记结算有限责任公司), in short CSDC, SD&C, or ChinaClear ( zh, 中国结算 or 中证登, ''Zhongzhengdeng''), is a central counterparty and central securiti ...

(CSDC) * Central Depository Services Limited (CDSL) * Central Securities Depository of Iran (CSDI) * Kazakh Central Securities Depository (KCSD) * CDS and Clearing Limited (CDSC) * Central Depository Company of Pakistan (CDC Pakistan) * Central Depository System of Sri Lanka (CDS) * Central Securities Depository of Türkiye (MKK) *

Hong Kong Monetary Authority The Hong Kong Monetary Authority (HKMA) is the central bank, central banking institution of Hong Kong. It is a government authority founded on 1 April 1993 when the Office of the Exchange Fund and the Office of the Commissioner of Banking merge ...

(HKMA) * Hong Kong Securities Clearing Company (HKSCC) * Indian Clearing Corporation Limited (ICCL) * Indonesia Clearing and Guarantee Corporation (KPEI) * Japan Securities Depository Centre (JASDEC) * Korea Securities Depository (KSD) * Multi Commodity Exchange Clearing Corporation Limited (MCXCCL) * Maldives Securities Depository * Mongolian Central Securities Depository (MCSD) * Mongolian Securities Clearing Center (MSCC) * NSE Clearing Limited * National Securities Depository Limited (NSDL) * New Zealand Central Securities Depository (NZCSD) * National Clearing Company of Pakistan Limited (NCCPL) * Kustodian Sentral Efek Indonesia (KSEI) * Philippine Depository & Trust Corporation (PDTC) * Royal Securities Exchange of Bhutan (RSEB) *

Shanghai Clearing House The Shanghai Clearing House (SHCH, zh, link=no, 上海清算所), formally the Inter-bank Market Clearing House Co., Ltd. ( zh, link=no, 銀行間市場清算所股份有限公司簡稱上海清算所), is a significant central counterparty and ...

(SHCH) *

Singapore Exchange Singapore Exchange Limited (SGX Group) is a Singapore-based exchange conglomerate, operating Equity (finance), equity, fixed income, currency and commodity markets. It provides a range of listing, trading, clearing, settlement, depository and ...

(SGX) * Taiwan Depository and Clearing Corporation (TDCC) * Thailand Securities Depository (TSD) * Uzbekistan State Central Securities Depository * Vietnam Securities Depository and Clearing Corporation (VSDC) In addition, the ACG had five associate members: the Association of Global Custodians, Calastone, the Singapore branch of

Deutsche Bank Deutsche Bank AG (, ) is a Germany, German multinational Investment banking, investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the Frankfurt Stock Exchange and the New York Stock Exchange. ...

, HSBC Hong Kong, and SIX SIS Singapore.

Americas Central Securities Depositories Association

The Americas Central Securities Depositories Association (ACSDA, ) was formed in 1999, with headquarters in

Lima Lima ( ; ), founded in 1535 as the Ciudad de los Reyes (, Spanish for "City of Biblical Magi, Kings"), is the capital and largest city of Peru. It is located in the valleys of the Chillón River, Chillón, Rímac River, Rímac and Lurín Rive ...

. As of early 2025, its membership was as follows. * Caja de Valores * (BYMA) * Bahamas Central Securities Depository (BCSD) * Barbados Central Securities Depository (BCSD) *

Bermuda Stock Exchange The Bermuda Stock Exchange (BSX), established in 1971, is located in Hamilton, Bermuda. The stock exchange's 2010 'Year End Review' report stated that its aggregate market capitalisation (excluding mutual funds) stood at US$319 billion. The e ...

(BSX) * Entidad de Depósito de Valores de Bolivia (EDV) * Brasil, Bolsa, Balcão (B3) *

Canadian Depository for Securities The Canadian Depository for Securities Ltd. (CDS Limited) is the world's second largest post-trade financial services company. It is the holding company for three operating subsidiaries: CDS Clearing and Depository Services Inc., CDS Securities Ma ...

(TMX CDS) * Depósito Central de Valores (DCV) * Depósito Centralizado de Valores de Colombia (Deceval) * InterClear Central de Valores * Central Bank of Costa Rica * Central de Valores Dominicana (CEVALDOM) * Eastern Caribbean Central Securities Depository (ECCSD) * Depósito Centralizado de Compensación y Liquidación de Valores (Decevale) * Central de Depósito de Valores (Cedeval) * Central de Valores Nacional (CVN) *

Bank of Jamaica The Bank of Jamaica () is the central bank of Jamaica located in Kingston. It was established by the Bank of Jamaica Act 1960 and was opened on May 1, 1961. It is responsible for the monetary policy of Jamaica on the instruction of the Minister o ...

* Jamaica Central Securities Depository (JCSD) * Indeval * Central Nicaragüense de Valores (Cenival) * Central Latinoamericana de Valores (Latinclear) * Bolsa de Valores de Asunción (BVA) * CAVALI * Trinidad and Tobago Central Depository *

Depository Trust & Clearing Corporation The Depository Trust & Clearing Corporation (DTCC) is an American financial market infrastructure company that provides clearing, settlement and trade reporting services to financial market participants. It performs the exchange of securities ...

Central Bank of Uruguay The Central Bank of Uruguay (, BCU) is the central bank of Uruguay. History The Central Bank of Uruguay was established on July 6, 1967 as an autonomous state entity (), with the passing of the 196th article of the Constitution of 1967. Prior ...

* Bolsa de Valores de Montevideo * Caja Venezolana de Valores (CVV)

Association of Eurasian Central Securities Depositories

The Association of Eurasian Central Securities Depositories (AECSD) brings together a number of central securities depositories (CSDs) in 9 countries of the

former Soviet Union The post-Soviet states, also referred to as the former Soviet Union or the former Soviet republics, are the independent sovereign states that emerged/re-emerged from the dissolution of the Soviet Union in 1991. Prior to their independence, they ...

as well as

India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...

Indonesia Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania, between the Indian Ocean, Indian and Pacific Ocean, Pacific oceans. Comprising over List of islands of Indonesia, 17,000 islands, including Sumatra, ...

Iran Iran, officially the Islamic Republic of Iran (IRI) and also known as Persia, is a country in West Asia. It borders Iraq to the west, Turkey, Azerbaijan, and Armenia to the northwest, the Caspian Sea to the north, Turkmenistan to the nort ...

Mongolia Mongolia is a landlocked country in East Asia, bordered by Russia to the north and China to the south and southeast. It covers an area of , with a population of 3.5 million, making it the world's List of countries and dependencies by po ...

South Korea South Korea, officially the Republic of Korea (ROK), is a country in East Asia. It constitutes the southern half of the Korea, Korean Peninsula and borders North Korea along the Korean Demilitarized Zone, with the Yellow Sea to the west and t ...

, and

. It was formed in

Moscow Moscow is the Capital city, capital and List of cities and towns in Russia by population, largest city of Russia, standing on the Moskva (river), Moskva River in Central Russia. It has a population estimated at over 13 million residents with ...

in 2004, following a series of gathering of its would-be members in the previous three years. As of early 2025, a majority of its members (9 of 16) were simultaneously members of the ACG: * National Depository Center of the Republic of Azerbaijan * Central Depository of Armenia (CDA) * Central Securities Depository of the Republic of Belarus * Georgian Central Securities Depository (GCSD) * National Securities Depository Limited of India (NSDL) * Central Depository Services Limited of India (CDSL) * Kazakh Central Securities Depository (KCSD) * Central Depository of Kyrgyzstan * National Settlement Depository of Russia (NSD) * Central Securities Depository of Türkiye (MKK) * Central Depository of Tajikistan *

Central Securities Depository A central securities depository (CSD) is a specialized financial market infrastructure organization holding securities such as shares or bonds, either in certificated or uncertificated ( dematerialized) form, allowing ownership to be easily tra ...

of Uzbekistan * Kustodian Sentral Efek Indonesia (KSEI) * Central Securities Depository of Iran (CSDI) * Mongolian Central Securities Depository (MCSD) * Korea Securities Depository (KSD)

Africa & Middle East Depositories Association

The Africa & Middle East Depositories Association (AMEDA) was established in April 2005. As of early 2025, its membership was as follows. * Abu Dhabi Securities Market * Algérie Clearing * Bahrain Clear Company * Central Securities Depository of Botswana * Dépositaire Central/Banque de Règlement of the West African Economic and Monetary Union (DC/BR) * Dubai Central Securities Depository * Misr for Central Clearing, Depository & Registry (MCDR) * Egyptian Central Securities Depository (ECSD) * Central Securities Depository (Ghana) Limited * Iraqi Depository Center * Securities Depository Center * Central Depository & Settlement Corporation (CDSC Kenya) * Kuwait Clearing Company * Midclear * Libyan Stock Market * Central Depository & Settlement Co. Ltd. (CDS Mauritius) * Maroclear * Nigeria Central Securities Clearing System (CSCS) * FMDQ Depository Limited * Muscat Clearing & Depository (SAOC) * Palestine Exchange (PEX) * Edaa *

National Bank of Rwanda The National Bank of Rwanda (, ) is the central bank of Rwanda. The bank was founded in 1964. The current governor of the bank is Soraya Munyana Hakuziyaremye. Location It is quartered at the National Bank of Rwanda Building, on KN6 Avenue in ...

* Edaa * Strate CSD * Khartoum Stock Exchange * Damascus Securities Exchange * CSD & Registry Company Limited * Tunisie Clearing * Central Securities Depository of Türkiye (MKK) * Lusaka Securities Exchange * Chengetedzai Depository Company * Zimbabwe Stock Exchange

World Forum of CSDs

The World Forum of Central Securities Depositories, or World Forum of CSDs, brings together the ECSDA, ACG, ACSDA, AECSD, and AMEDA.

References

External links

World Forum of CSDs

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
{{Webarchive, url=https://web.archive.org/web/20130521015514/http://ameda.org/ , date=2013-05-21 Payment systems Securities (finance) Financial law