General Information
The Central Securities Depository and Clearing House (CSD) is one of the pillars carrying the financial market, playing an important role in maintaining investor confidence. In Serbia, it is organized as a joint-stock company owned by the Republic of Serbia, prudentially supervised by the Securities Commission, since 24 December 2003. The CSD records all transactions in financial instruments, holders of such instruments and the rights arising from the instruments, issues unique identification numbers for financial instruments in accordance with international numbering and communication protocols, conducts the clearing and settlement of transactions and processes transactions in a book-entry form.
History
The CSD was established back in 2001 as an organizational unit within the National Bank of Serbia, to record the issue of financial instruments and ownership of the first issues of bonds of old foreign currency savings. Subsequently, its function was expanded to record all issued financial instruments, their holders, and to clearing and settlement. The CSD was issued first approvals to its governing instruments on 24 December 2003, by the Securities Commission.
Supervision
It is supervised by the Securities Commission, which monitors whether the CSD complies at all times with the law, to ensure that the CSD conducts its operations and activities in an orderly and professional manner. The Securities Commission, as a regulatory authority for the capital market of the Republic of Serbia, regulates, supervises and monitors operations of the CSD, persons with qualifying holdings, members of management etc. The Commission grants prior approval for the appointment of the CSD's general manager and members of the management board, for the governing instruments of the Central Securities Depository and any amendments to these documents. Furthermore, the CSD regularly files with the Commission its annual reports on operations, the regular annual financial statements and auditor’s reports.
The National Bank of Serbia, on the other hand, supervises the CSD’s compliance and of its members in the part that relates to performance of payment operations through money accounts with the CSD.
Members of CSD
The Republic, National Bank of Serbia, investment firms, credit institutions, market operators, regulated markets, investment fund management companies, foreign legal persons that perform clearing and settlement or registration of financial institutions and other persons, they can all be members of the CSD provided they fulfill the conditions for membership specified in the CSD rules.
Functions of CSD
The CSD maintains a register of financial instruments, of financial instruments in issuers' accounts, of accounts of financial instruments of the CSD members and their clients. It records the third-party rights in financial instruments. Its functions also include the safekeeping of electronic records relating to financial instruments and safekeeping of physical securities, managing CSD members’ money accounts, recording of ownership of materialized securities in a dematerialized form, clearing and settlement of liabilities and claims expressed in financial instruments and money, arising on the grounds of concluded transactions in financial instruments, and determining liabilities and claims of members of the CSD and their clients after the settlement of their mutual liabilities and claims, the transfer of financial instruments in the accounts of the CSD members, defining and assigning unique identification numbers for financial instruments, keeping a codebook for types of financial instruments etc.
Types of accounts CSD maintains
The accounts of the listed CSD members are opened and kept with the Central Securities Depository. These accounts include: deposit accounts, issue accounts, proprietary accounts, nominee accounts, management accounts, omnibus, i.e. custody accounts etc. The CSD also opens and manages money accounts of the CSD members and of the Guarantee Fund.
Reporting
Moreover, the CSD notifies the Securities Commission of registrations and transfers of securities to accounts, of any exceeding or falling below the thresholds of 10%, 20%, 33% or 50% of shareholder participation in the total capital of the market operator, of a broker-dealer company, market operator or CSD. The Central Securities Depository informs the Commission of each new member and termination of membership and about any significant violation of the statutory provisions, observed in the course of supervision of operations of its members.
Management
The Central Securities Depository has a general meeting of shareholders, a management board and a general manager. The competencies of the general meeting are performed by the Government through its authorized representatives. The representatives of the general meeting of shareholders and the general manager are appointed by the Government, at the proposal of the Ministry of Finance. The general meeting of shareholders appoints and relieves from their duties the members of the management board.
Fees
The CSD has a Rulebook on Fees which governs the membership fee and other fees charged by the CSD for its services.
The Central Securities Depository and Clearing House (CSD) is one of the pillars carrying the financial market, playing an important role in maintaining investor confidence. In Serbia, it is organized as a joint-stock company owned by the Republic of Serbia, prudentially supervised by the Securities Commission, since 24 December 2003. The CSD records all transactions in financial instruments, holders of such instruments and the rights arising from the instruments, issues unique identification numbers for financial instruments in accordance with international numbering and communication protocols, conducts the clearing and settlement of transactions and processes transactions in a book-entry form.
History
The CSD was established back in 2001 as an organizational unit within the National Bank of Serbia, to record the issue of financial instruments and ownership of the first issues of bonds of old foreign currency savings. Subsequently, its function was expanded to record all issued financial instruments, their holders, and to clearing and settlement. The CSD was issued first approvals to its governing instruments on 24 December 2003, by the Securities Commission.
Supervision
It is supervised by the Securities Commission, which monitors whether the CSD complies at all times with the law, to ensure that the CSD conducts its operations and activities in an orderly and professional manner. The Securities Commission, as a regulatory authority for the capital market of the Republic of Serbia, regulates, supervises and monitors operations of the CSD, persons with qualifying holdings, members of management etc. The Commission grants prior approval for the appointment of the CSD's general manager and members of the management board, for the governing instruments of the Central Securities Depository and any amendments to these documents. Furthermore, the CSD regularly files with the Commission its annual reports on operations, the regular annual financial statements and auditor’s reports.
The National Bank of Serbia, on the other hand, supervises the CSD’s compliance and of its members in the part that relates to performance of payment operations through money accounts with the CSD.
Members of CSD
The Republic, National Bank of Serbia, investment firms, credit institutions, market operators, regulated markets, investment fund management companies, foreign legal persons that perform clearing and settlement or registration of financial institutions and other persons, they can all be members of the CSD provided they fulfill the conditions for membership specified in the CSD rules.
Functions of CSD
The CSD maintains a register of financial instruments, of financial instruments in issuers' accounts, of accounts of financial instruments of the CSD members and their clients. It records the third-party rights in financial instruments. Its functions also include the safekeeping of electronic records relating to financial instruments and safekeeping of physical securities, managing CSD members’ money accounts, recording of ownership of materialized securities in a dematerialized form, clearing and settlement of liabilities and claims expressed in financial instruments and money, arising on the grounds of concluded transactions in financial instruments, and determining liabilities and claims of members of the CSD and their clients after the settlement of their mutual liabilities and claims, the transfer of financial instruments in the accounts of the CSD members, defining and assigning unique identification numbers for financial instruments, keeping a codebook for types of financial instruments etc.
Types of accounts CSD maintains
The accounts of the listed CSD members are opened and kept with the Central Securities Depository. These accounts include: deposit accounts, issue accounts, proprietary accounts, nominee accounts, management accounts, omnibus, i.e. custody accounts etc. The CSD also opens and manages money accounts of the CSD members and of the Guarantee Fund.
Reporting
Moreover, the CSD notifies the Securities Commission of registrations and transfers of securities to accounts, of any exceeding or falling below the thresholds of 10%, 20%, 33% or 50% of shareholder participation in the total capital of the market operator, of a broker-dealer company, market operator or CSD. The Central Securities Depository informs the Commission of each new member and termination of membership and about any significant violation of the statutory provisions, observed in the course of supervision of operations of its members.
Management
The Central Securities Depository has a general meeting of shareholders, a management board and a general manager. The competencies of the general meeting are performed by the Government through its authorized representatives. The representatives of the general meeting of shareholders and the general manager are appointed by the Government, at the proposal of the Ministry of Finance. The general meeting of shareholders appoints and relieves from their duties the members of the management board.
Fees
The CSD has a Rulebook on Fees which governs the membership fee and other fees charged by the CSD for its services.