What is a CSD?
CSD stands for Central Securities Depository.
A CSD is a financial market infrastructure that provides in the safekeeping of securities such as shares and bonds.
The formal definition of a CSD is captured in the European Central Securities Depository Regulation and describes a CSD as a legal entity that operates securities settlement systems and provides related services
The main customers of a CSD are:
- financial institutions
- issuers of financial instruments, either private companies or public institutions.
CSD main activities
The European CSD Regulation (CSDR) provides more detail. It describes the main activities of a CSD as an entity which:
- operates a securities settlement system
- records newly-issued securities in a book entry system
- provides and maintains securities accounts
See below for more on what these three activities involve.