About Central Securities Depository and Clearing House

The Central Securities Depository and Clearing house (CSD) started its operations on November 19, 2001 at the time of the issue of the FFC (Federal Foreign Currency) Bonds. The CSD is located in Belgrade, Serbia and at the beginning it represented an organizational part of the National bank of Serbia by which it was ruled and operated.

The development of the financial market provided changes in the structure of the CSD. The Law on Securities (which was in application as of October, 2003) determined the CSD as an independent institution and a joint-stock company in which 51% of shares should be owned by the State. According to the said Law, the CSD was founded as an independent institution and a joint-stock company which is 100% in the ownership of the State.

The CSD represents an institution meant to help the development of the financial market in Serbia. Its operations include the registering of all types of securities issued on the territory of Serbia, including bonds, treasury bills and shares. Among other responsibilities the CSD opens accounts for legal entities and physical persons, transfers the securities from the previous to the account of the new owner, registers the collateral rights of third persons and performs the clearing and settlement of both securities and money transactions.

As of January 14, 2003, occurred the transformation of the CSD. The CSD started a new working platform with the Project Beoclear, which comprises clearing and settlement of cash transactions as well as the clearing and settlement of securities, on the basis of DvP (Delivery versus Payment).

The Settlement system is designed according to the Recommendations for Securities Settlement systems - Committee on Payment and Settlement Systems – CPSS; Technical Committee of the International Organization of Securities Commissions - IOSCO.

The CSD is a member of the Association of National Numbering Agencies (ANNA) since it allocates the CFI codes and ISIN numbers according to ISO standards. The CSD is also a member of ECSDA (European CSD Association) and ISSA (International Securities Services Association).

Members of the CSD can be following entities: Republic of Serbia, National bank of Serbia, brokerage houses, banks, stock exchanges, companies for management of funds and foreign CSDs. At the moment the CSD counts over 50 members – banks and brokerage firms. These members can open accounts for their clients, physical and legal persons. Republic of Serbia and National bank of Serbia are members of the CSD.

The above said Securities Act stipulated the dematerialization of securities which means electronic record keeping of securities on the accounts of their owners. In performing its operations, the CSD applies electronic data exchange with all its members and with the main participants of the trade process in Serbia.

Given its importance, the role of the CSD and Clearing house of Serbia is crucial for the functioning of the capital market in Serbia.