central securities depository (CSD)

A central securities depository (CSD) operates the infrastructure used to register, safeguard, and transfer securities. It maintains authoritative records of investors' holdings and supports the completion of trades without routinely moving paper certificates. Depending on the market, the underlying instruments may be stored as immobilised documents or represented entirely by electronic entries. A CSD may also handle events affecting securities, such as interest payments, maturities, conversions, and other issuer instructions, while applying controls that help confirm the validity and continuity of securities in circulation.