A CSD can hold securities in immobilized physical form or in dematerialized form, as electronic records only. In many countries, a CSD also operates a securities settlement system that transfers securities by book entry. DvP, which links the transfer to the payment of funds, can also take place in such a system1.

In Japan, the Bank of Japan is the book-entry transfer institution for Japanese government bonds2, and the Japan Securities Depository Center (JASDEC) is the one for shares, corporate bonds, and similar securities3. Abroad, there are also international CSDs (ICSDs) that handle cross-border transactions, such as Euroclear Bank in Belgium4.

A CSD is an institution that provides accounts and can maintain the record of who holds the rights to securities. Its role differs from that of a central counterparty, which assumes the obligations of a trade15.

Notes

  1. "金融市場インフラのための原則" (Principles for financial market infrastructures, provisional Japanese translation; April 2012), paragraphs 1.11 and 1.12, pages 10–11 (in Japanese). ↩ ↩2

  2. Bank of Japan, "日本銀行が運営する国債振替決済制度に関する情報開示" (Disclosure on the JGB Book-Entry Transfer System operated by the Bank of Japan; July 31, 2025), section 3-1, page 7 (in Japanese). ↩

  3. Bank of Japan, "決済システムレポート 2024" (Payment and Settlement Systems Report 2024; September 2024), page 14 (in Japanese). ↩

  4. National Bank of Belgium, "Securities clearing, settlement and custody" (Financial Market Infrastructures and Payment Services Report 2026), section 2.2, page 20. ↩

  5. Bank of Japan, "決済システムレポート 2024" (Payment and Settlement Systems Report 2024; September 2024), page 6 (types of FMIs) (in Japanese). ↩