Central securities depository

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A central securities depository (also securities depository bank or Kassenverein , English : Central Securities Depository , CSD ) is a company that takes over the custody and transfer of securities in the form of physical pieces or book entries ( dematerialized securities ) in securities accounts and quasi as a central custodian bank for "normal “Custodian acts.

Task of the central securities depository in securities trading

Exchange-traded securities are stored in a central securities warehouse. It makes sense that this function is not performed by individual banks, but for the entire financial market by an authorized central securities depository, whereby national interests can also play a role. The central securities depository is integrated into the cross-company securities trading processes. The process is initiated by a bank customer who gives the bank the order to buy or sell a security. A securities transaction takes place on the stock exchange and is recorded electronically. After clearing, the central securities depository also comes into play as part of the settlement : the data is transmitted online from the exchange to the central securities depository in real time. This now debits the seller's account with the fees and credits the purchase to the buyer. The money flows in reverse. The banks involved in the transaction now receive an electronic confirmation. The security remains in the central warehouse. Only in the master data record is the possibly changed custodian bank (normal case) entered as owner and, in the case of registered shares, also the securities account holder. With the central safekeeping, the owner no longer has access to his securities. He only receives a deposit statement from his stored papers.

A physical delivery is still possible. However, considerable fees are incurred and the security holder must consequently bear the considerable risks of physical security ownership such as theft, fire, etc. Another physical delivery is also associated with costs, which as a rule far exceed the value of individual securities.

backgrounds

For example, Clearstream is the central securities depository for the German and Luxembourg securities markets, SIX Group for Switzerland and the Oesterreichische Kontrollbank (OeKB) for Austria .

If customers of a custodian bank sell shares to one another, this transaction can be processed directly by the custodian bank. If, however, customers of different custodian banks trade with one another, this transaction is usually processed through a central securities depository with which both custodian banks are connected. This system has the advantage that the custodian banks do not need a technical connection to any other custodian bank, but only have to be linked to a central securities depository in order to be able to process transactions with customers of other custodian banks.

Situation in Germany

While the central securities depository used to be of a government nature, this function is now taken over by Clearstream . Although some custodian banks have already considered establishing a corresponding competing service, this has not yet been implemented.

List of global central securities depositories (CSDs)

  • Australia: Clearing House Electronic Sub-register System (CHESS) Austraclear (CSD for Australian government securities)
  • Belgium: EBE (CSD) (formerly CIK), NBB-Securities Settlement System (SSS, CSD for Belgian government securities), Euroclear Bank (ICSD)
  • Denmark: VP Securities Services
  • Germany: Clearstream Banking Frankfurt (CBF)
  • Finland: Euroclear Finland (EFI, formerly APK)
  • France: Euroclear France (EF, formerly SICOVAM)
  • Greece: Hellenic Exchanges (formerly HCSD) and Bank of Greece (BOGS, CSD for Greek government bonds)
  • Great Britain: Euroclear UK & Ireland (EUI, formerly CRESTCo Ltd) (subsidiary of Euroclear since 2002)
  • Hong Kong: Central Clearing and Settlement System and Central Moneymarkets Unit (CMU)
  • Ireland: Euroclear UK & Ireland (EUI, formerly CRESTCo Ltd) and National Treasury Management Agency (CSD for Irish government bonds)
  • Iceland: Verðbréfaskráning Íslands (VBSI)
  • Italy: Monte Titoli
  • Japan: Japan Securities Depository Center (JASDEC) and Japan Securities Settlement & Custody (JSSC)
  • Canada: The Canadian Depository for Securities (CDS)
  • Kazakhstan: Central Securities Depository (KACD)
  • Korea: Korea Securities Depository (KSD)
  • Luxembourg: Clearstream Banking Luxembourg (CBL), LuxCSD
  • Mexico: SD Indeval
  • New Zealand: NZCSD
  • Netherlands: Euroclear Nederland (ENL, formerly NECIGEF)
  • Norway: Verdipapirsentralen i Norge (VPS)
  • Austria: OeKB CSD GmbH (was a department of OeKB AG until September 12, 2015)
  • Poland: Krajowy Depozyt Papierów Wartościowych (KDPW)
  • Portugal: Interbolsa and SITEME
  • Sweden: Euroclear Sweden (ESE, formerly VPC)
  • Switzerland: SIX SIS (formerly SIS SegaInterSettle AG)
  • Singapore: The Central Depository (Pte) Limited (CDP)
  • Slovakia: Centrálny depozitár cenných papierov SR, as (CDCP)
  • Spain: Iberclear
  • South Africa: STRATE
  • Hungary: KELER
  • United States: Federal Reserve's Fedwire Securities Service and The Depository Trust Company (DTC)

European and international central securities depositories

In addition to the “normal” national central securities depositories, a distinction is made between central securities depositories that are allowed to operate throughout the European Economic Area (see Central Securities Depositories (EU) ) and international central securities depositories. An international central or international central securities depository ( ICSD ), a CSD that businesses in the international as well as in certain local markets , mostly through direct or indirect (through local banks ) linking to the national central securities depository (CSD), unwinds . There are three ICSDs: Euroclear Bank (Brussels), Clearstream Banking (Luxembourg) and SIX SIS (Zurich).

See also

Individual evidence

  1. http://www.bundesbank.de/Redaktion/DE/Downloads/Service/Meldewesen/Bankenstatistik/Depotstatistik/verzeichnis_auslaendischer_zentralverwahrer.pdf?__blob=publicationFile Deutsche Bundesbank: Directory of foreign central securities depositories
  2. a b c CSDs start a joint venture to increase post-trade efficiency in Europe ( Memento from September 24, 2015 in the Internet Archive )
  3. a b c d e f g h i Deutsche Bundesbank: Directory of foreign central securities depositories
  4. a b c d Lattemann / Neumann: Clearing and Settlement in Transition - A Perspective for European Securities Trading (2002) ( Memento from June 25, 2007 in the Internet Archive ) (PDF; 65 kB)
  5. www.ksd.or.kr (English)
  6. www.kdpw.pl (English)
  7. DISCLOSURE FRAMEWORK FOR SECURITIES SETTLEMENT SYSTEMS ( Memento from January 28, 2012 in the Internet Archive ) (English; PDF; 215 kB)
  8. www.cdcp.sk (Slovak and English)