Depositary Institution
/dɪˈpɒzɪtəri ɪnˌstɪtjuˈʃən/
Definitions
- (n.) An entity legally authorized to accept deposits, such as a bank or financial institution, often responsible for safekeeping and managing securities or funds.
The depositary institution held the customer's securities in trust.
- (n.) A financial intermediary designated under securities law to hold assets for investors, ensuring the transfer, registration, and settlement of securities.
The depositary institution facilitated the cross-border transfer of shares.
Forms
- depositary institution
- depositary institutions
Related terms
See also
Commentary
The term is often used interchangeably with 'custodian,' but 'depositary institution' specifically highlights the legal authorization and role in securities holding and settlement.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.