Central Securities Depository (CSD)
Entity holding securities in electronic form, facilitating settlement processes.
Detailed Description
Central Securities Depository (CSD)
What is the primary function of a Central Securities Depository?
The primary function of a CSD is to provide a secure environment for the custody of securities and to streamline the process of transferring ownership.
What are some benefits of using a CSD?
Benefits include increased efficiency, enhanced security, improved liquidity, cost reduction, and access to a wider range of services.
What types of securities can CSDs hold?
CSDs can hold equities, fixed income instruments, derivatives, investment funds, and government securities.
How do CSDs differ from custodians?
CSDs provide settlement services in addition to safekeeping, while custodians typically only focus on safekeeping assets.
What regulatory framework do CSDs operate under?
CSDs operate under a stringent regulatory framework established by financial authorities to ensure transparency, security, and efficiency.