Central Securities Depository (CSD) – A specialist institution or financial institution that holds securities such as shares in a physical (certificated) or dematerialized (existing solely as electronic records) so that ownership can be easily transferred via a book entry rather than physically. A CSD may provide other services such as electronic clearing and settlement of securities, as well as services such as securities borrowing and lending. See CSCS.
Clearing and settlement – The clearing and settlement of market transactions are described as follows: a. Clearing relates to identifying the obligations of both parties on either side of a transaction. b. Settlement is when the final transfer of securities and funds occur.
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