What is a Central Securities Depository?

Why were Central Securities Depositories developed?

Central Securities Depositories (CSDs) were developed so that securities remained in a single place. This is often called “immobilisation”, which eliminates the need for delivery and endless movements of paper certificates through messengers.  Ownership records are simply kept in the form of electronic book-entry.

Who holds the accounts at CSDs?

Custodians hold accounts at CSDs.

What is the scope of countries embracing CSDs and dematerialisation?

More than 25 countries across the world have moved to full dematerialisation - where paper certificates are eliminated altogether.

In the U.S., government and municipal bonds and mutual funds are dematerialised. In some countries, legal and regulatory changes are needed before physical certificates can finally be replaced.

Do CSDs provide services other than electronic book-entry?

Yes, CSDs can also provide a range of additional services including data, securities lending, custody, collateral management, and payments.

What are some examples of CSDs?

Major CSDs include:

• DTCC - the U.S.
• Euroclear and Clearstream - Europe
• NSDL - India
• CSDC - China
• JASDEC - Japan