Central securities depository

A central securities depository is a systemically important institution in the securities market that by providing a specific range of services to securities issuers makes it possible to issue securities, while enabling market participants to fulfil the obligation of transferring securities and making payments for them as the final phase of the transfer of securities from the seller to the buyer.

A central securities depository may offer its clients a diverse range of services, which varies in individual countries according to the level of development and the size of the local securities market, as well as its cross-border connections. A central securities depository’s key services include the initial recording of securities in a book-entry system, providing and maintaining securities accounts at the top tier level (central maintenance service), and operating a securities settlement system (settlement service).

Here it is vital that the central securities depository offers services in a manner that contributes to the efficiency, security and reliability of the functioning of the securities market as a whole, and ensures the preservation of the rights of securities issuers and holders.

In Slovenia the role of the central securities depository is played by the Central Securities Clearing Corporation (KDD), and its operation is currently regulated by the relevant sectoral legislation (Regulation on improving securities settlement in the European Union and on central securities depositories, Financial Instruments Market Act, Book-Entry Securities Act, Takeovers Act, etc.). In relation to central securities depositories the Bank of Slovenia may act in different capacities, as a user of services that support Eurosystem credit operations, as the manager of its own portfolio of securities, and as the national competent authority.