Acentral securities depository (CSD) is a specializedfinancial market infrastructure organization holdingsecurities such asshares orbonds, either in certificated or uncertificated (dematerialized) form, allowing ownership to be easily transferred through abook entry rather than by a transfer of physical certificates. This allowsbrokers and financial companies to hold their securities at one location where they can be available forclearing andsettlement. In recent decades this has usually been done electronically, making it much faster and easier than was traditionally the case where physical certificates had to be exchanged after a trade had been completed.

In some cases these organizations also carry out centralized comparison and transaction processing such as clearing and settlement of securities transfers, securities pledges, and securities freezes.

In modern corporate debt markets, investors achievecollateralization through CSDs. The CSDs operate as trustees for the owners of the security whereby the collateral is stored and automatically transferred to the lenders in case of non-performance.^[1]

The first recorded CSD was theWiener Giro- und Cassen-Verein inVienna, established in 1872.^[2]: 39 Also in 1872, theBerliner Kassenverein [de] introduced a CSD-like service (German:Giro-Effekten-Depots), discontinued it two years later, and revived it on a permanent basis in 1882.^{[citation needed]} Similarly namedKassenverein institutions subsequently spread in Germany, and under theGerman occupation of France, also toFrance in the early 1940s. TheUnited States adopted the CSD model with the creation of theDepository Trust Company in 1973 following coordinated initiatives of the financial industry in the late 1960s. In theUnited Kingdom, the CREST project was only initiated in 1993, leading to the 1996 creation ofCRESTCo as the country's first CSD.

The development of theeurobond market in the 1960s led to the first so-called international CSD or ICSD in the form of theEuroclear System initially developed by theMorgan Guaranty branch inBrussels, started in 1968 and reorganized in late 2000 asEuroclear Bank. In reaction, a group of other banks in 1970 founded a competing entity in nearbyLuxembourg, initially calledCedel and rebranded in 2000 asClearstream Banking SA. At least initially, Euroclear was viewed as largely aligned withbuy side interests whereas Cedel was closer to thesell side.^[2]: 35-37

A CSD can be national or international in nature, and may be for a specific type of security, such asgovernment bonds.

Many countries have one domestic CSD that was traditionally associated with the national stock exchange. These organizations are typically heavily regulated by the government and may or may not be separate from the exchanges where trading in securities occurs.

An international CSD is a central securities depository that settles trades in international securities such aseurobonds although many also settle trades in various domestic securities, usually through direct or indirect (through local agents) links to local CSDs. Examples of international CSDs includeClearstream Banking SA (previously Cedel),Euroclear Bank, andSIX SIS. While viewed as a national CSD rather than an ICSD, the USDepository Trust Company (DTC) does hold over $2 trillion in non-US securities and inAmerican depositary receipts from over 100 nations.

• Safekeeping Securities may be in dematerialized form, book-entry only form (with one or more "global" certificates), or in physical form immobilized within the CSD.
• Deposit and withdrawal Supporting deposits and withdrawals involves the relationship between the transfer agent and/or issuers and the CSD. It also covers the CSD's role within theunderwriting process or listing of new issues in a market.
• Dividend, interest, and principal processing, as well as corporate actions including proxy voting Paying and transfer agents, as well as issuers are involved in these processes, depending on the level of services provided by the CSD and its relationship with these entities.
• Other services CSDs offer additional services aside from those considered core services. These services includesecurities lending and borrowing, matching, andrepo settlement, or ISIN assistance.
• Pledge - Central depositories provide pledging of share and securities. Every country is required to provide legal framework to protect the interest of the pledger and pledgee.

However, there are risks and responsibilities regarding these services that must be taken into consideration in analyzing and evaluating each market on a case-by-case basis.^[3]

CSDs have formed five regional associative bodies with partly overlapping membership: for example, the Central Securities Depository of Turkey (Turkish:Merkezi Kayıt Kuruluşu, MKK) is an associate member of ECSDA and a full member of ACG, AECSD and AMEDA. The five associations, in turn, have formed a global body, the World Forum of Central Securities Depositories.

The European Central Securities Depositories Association (ECSDA), based inBrussels, was established in November 1997 by 13 founding members.^[4] As of early 2025, ECSDA had 32 full members and 8 associate members.^[5]

Associate members as of early 2025 were the Registry of Securities (RVP) and Central Registry of Securities JSC Banja Luka (CR HoV RS) inBosnia and Herzegovina; AIX CSD and KCSD inKazakhstan; Central Securities Depository AD Skopje inNorth Macedonia; National Depository ofUkraine (NDU); Central Securities Depository and Clearing House (CR HoV) inSerbia; and the Central Securities Depository ofTurkey (MKK).

The Asia-Pacific Central Securities Depository Group, or Asia-Pacific CSD Group (ACG), was also formed in November 1997.^[6] As of early 2025, its membership was as follows.^[7]

In addition, the ACG had five associate members: theAssociation of Global Custodians,Calastone, the Singapore branch ofDeutsche Bank,HSBC Hong Kong, andSIX SIS Singapore.

The Americas Central Securities Depositories Association (ACSDA,Spanish:Asociación de Depósitos Centrales de Valores de América) was formed in 1999, with headquarters inLima.^[6] As of early 2025, its membership was as follows.^[8]

The Association of Eurasian Central Securities Depositories (AECSD) brings together a number of central securities depositories (CSDs) in 9 countries of theformer Soviet Union as well asIndia,Indonesia,Iran,Mongolia,South Korea, andTurkey. It was formed inMoscow in 2004, following a series of gathering of its would-be members in the previous three years.^[9] As of early 2025, a majority of its members (9 of 16) were simultaneously members of the ACG:^[10]

The Africa & Middle East Depositories Association (AMEDA) was established in April 2005.^[6] As of early 2025, its membership was as follows.^[11]

The World Forum of Central Securities Depositories, or World Forum of CSDs, brings together the ECSDA, ACG, ACSDA, AECSD, and AMEDA.^[6]

• Clearing house
• Custodian bank
• International Securities Services Association
• Securities market participants (United States)

• World Forum of CSDs
• Asia Pacific Central Securities Depository Group
• European Central Securities Depositories Association
• America's Central Securities Depositories Association
• Association of Eurasian Central Securities Depositories
• Africa & Middle East Depositories AssociationArchived 2013-05-21 at theWayback Machine

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• Securities (finance)
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