Verdipapircentraler

Verdipapircentraler, often translated as central securities depositories (CSDs), are financial market infrastructures that hold and manage securities, such as stocks and bonds, on behalf of investors. Their primary function is to ensure the safe and efficient settlement of securities transactions. When a trade is executed, the CSD facilitates the transfer of ownership of the securities from the seller to the buyer, as well as the corresponding payment.

CSDs play a crucial role in reducing risks within the financial system. By immobilizing physical certificates and operating through electronic book-entry systems, they minimize the risks associated with physical handling, loss, or theft of securities. They also provide a secure platform for safekeeping and custody of securities, offering a centralized record of ownership. This centralization streamlines the entire process of trading, clearing, and settlement.

In many jurisdictions, CSDs are regulated entities and operate under strict legal frameworks. They are responsible for maintaining accurate and up-to-date records of securities ownership, which is essential for corporate actions like dividend payments and rights issues. The development of CSDs has been a key element in the modernization of financial markets, enabling greater liquidity, transparency, and investor confidence. Examples of CSDs include Euroclear and Clearstream internationally, and various national depositories within individual countries.