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Glossary

Depository

Category — Market Participants

A Depository is a specialized financial organization, a professional participant in the securities market whose main activity is the provision of services for the registration and certification of the ownership rights of securities, as well as storing information about securities and their owners in documentary or uncertified (dematerialized) form. The registration and certification of rights to securities by a depositary is legally equal to the registration and certification of rights to securities by the registrar in the register of securities owners. Also, within the framework of its activities, the depository helps investors to professionally resolve many issues related to the ownership and disposal of securities, as well as deal with a large number of nuances that inevitably arise in the process of investment activity. Depositaries are divided into various types according to their purpose and functions
- Settlement depository carries out all operations on securities accounts of participants in the securities market executing transactions which were made through trade organizers at the securities market
(Example, National Settlement Depository (Russia))

- Central Securities Depository. The status of central depository is assigned according to various criteria to the only legal entity in the country or region with the license to operate as a depository. This financial institution conducts transactions on the securities accounts of clients-holders of securities when these participants carry out transactions through a variety of organizers of trading in the securities market. That is, in other words, the Central Securities Depository performs operations when trading on the stock exchange.(Example, Central Securities Depository Prague)

- A Specialized depository is a participant in the securities market that carries out depository activities, and also, when working with investment funds, mutual funds, non-state pension funds, performs control functions over the compliance of the activities of management companies and the funds themselves with legislation.(Example, The First Special Depository (Russia))

- The International Central Securities Depository is a central securities depository which performs clearing and settlement of transactions in international securities or cross-border transactions in national securities.(Example, Euroclear, Clearstream)
Terms from the same category