The Central Securities Depository and Clearing House (CSD) was established in 2001 as an organizational unit within the National Bank of Serbia, to record the issue of financial instruments and ownership of the first issue of bonds of old foreign currency savings of citizens. Subsequently, its function was expanded to record all issued financial instruments, owners of all financial instruments, as well as clearing and balancing financial instruments and cash arising from trading in financial instruments.
On 10 December 2003, the CSD was registered as a legal entity, in the legal form of a joint stock company, 100% owned by the Republic of Serbia.
The rights, obligations, and responsibilities of the CSD are governed by the Law on the Capital Market and the Companies Law.
As provided for under the Law on the Capital Market, the Serbian Securities Commission is the regulatory and oversight body for the CSD. According to the same piece of legislation, the National Bank of Serbia is responsible for enacting regulations that govern payment operations using cash accounts opened with the CSD; the central bank also monitors these operations for statutory compliance.
The Law on the Capital Market stipulates that membership in the CSD is open to the Republic of Serbia, National Bank of Serbia, investment firms, credit institutions, market operators, regulated markets, fund management companies, foreign legal entities engaging in clearing and settlement or registration, and any other entities that meet membership criteria set out in the CSD’s general enactments. The CSD’s membership has grown to include over 50 investment companies and credit institutions. The Republic of Serbia and National Bank of Serbia are also members of the CSD.
Today the CSD is both a depository institution and a clearinghouse that performs its duties in compliance with national legislation and international standards.
The CSD today is at the same time a depository institution and a clearing house that performs its activities in accordance with the national legislation and international standards.
Activities within the scope of the CSD include pre-trading activities (registration of financial instruments in dematerialized form) as well as post-trading activities, since the central function of the CSD is to provide infrastructure for accurate and secure recording, as well as timely settlement of transactions with financial instruments.
The settlement system is designes in accordance with Recommendations for Securities Settlement systems issued by the Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the International Organisation of Securities Commissions (IOSCO).
The CSD is a key pillar of the Serbian financial market.