Securities Depository
/ˈsɛkjʊrɪtiz dɪˈpɒzɪtɔːri/
Definitions
- (n.) An organization or entity that holds securities in electronic or physical form, facilitating their transfer and settlement among market participants.
The securities depository ensures the efficient exchange of ownership titles without physical certificate transfer.
- (n.) A central institution that provides custody and safekeeping of securities, enabling book-entry settlement in capital markets.
Central banks often rely on a securities depository to reduce settlement risks in government bond transactions.
Commentary
Typically functions as a central securities depository (CSD) in market infrastructure; drafting should clarify whether physical or electronic custody is addressed.
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.