About Central Securities Depository and Clearing House

The Central Securities Depository and Clearing House (CSD) was established in 2001 as a division of the National Bank of Serbia, the country’s central bank, to document the first issue of bonds designed to settle the state’s obligations arising from frozen foreign currency savings, as well as to register title to these securities. Its remit was subsequently extended to cover registration of all issues of financial instruments and clearing and settlement of financial instruments and cash pursuant to transactions involving financial instruments.

On 10 December 2003 the CSD was registered as a joint-stock company wholly 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 is a key pillar of the Serbian financial market.

The CSD’s key functions in the financial market are:
  • Ensuring a reliable system to register title to all financial instruments issued;
  • Allowing transfer of title transparently and at minimum cost;
  • Providing a uniform platform for clearing and settling financial instruments and cash pursuant to transactions involving financial instruments;
  • Guaranteeing transactions are irrevocable once executed;
  • Allowing regulators to perform the required oversight of the market in financial instruments;
  • Allowing the application of international standards;
  • Ensuring linkages with regional and international peer institutions;
  • Promoting the development of Serbia’s financial market.

The CSD’s primary function is to provide infrastructure for accurate and reliable registration and timely settlement of transactions involving financial instruments. As such, its activities take place both before a transaction (such as registration of dematerialised financial instruments) and after one.

The settlement system follows 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).

In compliance with national legislation and ISO standards, the CSD assigns identifying CFI and ISIN codes for financial instruments.

In its capacity as the National Numbering Agency (NNA) for the territory of the Republic of Serbia, the CSD is a member of the Association of National Numbering Agencies (ANNA)

The CSD is also a member of the European Central Securities Depositories Association (ECSDA).