Basic terms
Dematerialised financial instrumentsShares, money market instruments, units in collective investment undertakings, options, futures, swaps, interest rate forwards, and other financial instruments derived from securities, currencies, interest rates, yields, commodities, or credit risk, as well as other derivatives registered as electronic records in financial instruments accounts kept with the Central Securities Depository, that confer on the lawful holder of such financial instrument certain rights in respect of the issuer.
CFI Code
The Classification of Financial Instruments (CFI) Code is a code assigned to a financial instrument pursuant to international standard ISO 10962:2015(Е). The CFI Code is a string of alphabetical characters that identify the type of financial instrument, rights conferred by the financial instrument, and other key characteristics of the financial instrument.
ISIN
The International Securities Identification Number (ISIN) is a unique identifier of a security and is assigned pursuant to international standard ISO 6166. The ISIN is an alphanumerical string that identifies the country of issue, issuer, type, and other key characteristics of the financial instrument.
Issuer
A Serbian or foreign legal entity that issues or proposes to issue securities or other financial instruments. For certificates of deposit, the issuer is the entity issuing the securities represented by the certificates of deposit.
Lawful holder of financial instruments
A person in whose name a financial instrument account has been opened with the Central Securities Depository, or a person on whose behalf a financial instrument is kept in a financial instrument account with the Central Securities Depository.
Investment firm
An entity whose regular activities or operations include the provision of one or multiple investment-related services to third parties, or the professional performance of one or multiple investment-related activities.
Broker-dealer
An investment firm whose regular activities or operations include the provision of one or multiple investment-related services to third parties, or the professional performance of one or multiple investment-related activities.
Authorised bank
An investment firm that is a subsidiary of a credit institution whose regular activities or operations include the provision of one or multiple investment-related services to third parties, or the professional performance of one or multiple investment-related activities in connection with one or multiple financial instruments.
Credit institution
An entity operating pursuant to legislation governing banks and credit institutions.
Custody bank
A bank that maintains an account of an investment fund and performs other custody services for that investment fund, and handles assets of the investment fund only as directed by a management company in compliance with the law and prospectus of the investment fund.
Members of the Central Securities Depository
The Republic of Serbia, National Bank of Serbia, investment firms, and credit institutions. Serbian law also allows market operators, regulated markets, fund management companies, and foreign legal entities engaging in clearing and settlement or registration of financial instruments to be members of the Central Securities Depository.
Stock exchange
A financial market institution where authorised brokers and dealers trade standardised instruments in accordance with pre-determined rules, and where prices are based on supply and demand.
Over-the-Counter (OTC) trade
Any sale or purchase of securities that takes place away from a stock exchange.
Proof of transaction
A proof of a sale and purchase transaction entered into between the seller and purchaser of a financial instrument.
Clеаring
The establishment of mutual liabilities and claims with regard to securities and cash between participants in a trade in financial instruments.
Net position
The difference between total potential debit and credit in an accounting cycle.
Settlement
A process in which financial instruments are delivered from one party in a trade to another, usually against payment of money.
Т+0 (transaction date)
The date on which the parties to a trade in financial instruments enter into that trade. Т+1
The first working day following the transaction date.
Т+2
The second working day following the transaction date: the date on which the trade in financial instruments is settled.
DvP (Delivery Versus Payment)
Simultaneous transfer of financial instruments and cash.
DvD (Delivery versus Delivery)
Transfer of financial instruments from the account of one party to that of another for the purpose of payment in the purchase of another financial instrument simultaneously with the transfer of such other financial instrument.
FОP (Free of Payment)
Transfer of financial instruments from the financial instrument account of one owner to the financial instrument account of another holder without payment.
Guarantee Fund
The Central Securities Depository Guarantee Fund consists of foreign currency contributions payable by members of the Central Securities Depository into the Fund account kept with the National Bank of Serbia. Its purpose is to provide the money needed to cover any outstanding liabilities in the event that a Central Securities Depository member cannot provide the securities or cash required for the settlement of a transaction involving financial instruments.
