What is a Central Securities Depository?
Peter Eisenhardt
30 years: Capital markets & investment banking
Central Securities Depositories, or CSDs, were developed in the 1960s from a crisis built on excessive trading volumes which threatened to swamp settlement systems. In this short video, Peter explains how CSDs function and their uses.
Central Securities Depositories, or CSDs, were developed in the 1960s from a crisis built on excessive trading volumes which threatened to swamp settlement systems. In this short video, Peter explains how CSDs function and their uses.
Join now to start learning today
Finance Unlocked is the video learning platform built for finance professionals.
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
What is a Central Securities Depository?
1 min 38 secs
Central Securities Depositories (CSDs) were developed so that the securities industry could move towards “dematerialisation” and avoid swamping the settlement systems.
Key learning objectives:
Describe the scope and additional features CSDs provide
Understand why CSDs were developed
Outline the examples of major CSDs
Book a demo to access
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
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
Book a demo to access
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
Peter Eisenhardt
16:09
Related videos
Introduction to Commercial Paper (CP)
In this video, Peter outlines a commercial paper. He begins by explaining what commercial paper is all about and goes on to talk about the interest of investors and borrowers in commercial paper. He further explains what can go wrong and finishes by talking about the future of commercial paper.
Peter Eisenhardt • 20:34
