The CSD enables transfer of securities from one investor's account to another in cases of death, bankruptcy, or other operations as classified by law.
DVP Settlement Model
Delivery versus Payment (DVP) Model 2 is used for trade transfers, with gross transaction and net transaction settlement through settlement banks.
Settlement Bank Integration
All CSD participants must have an account at a settlement bank. Custodian Banks serve as Settlement Banks responsible for transaction delivery.
Efficient Processing
Bilateral netting amongst banks for prompt interbank payments. The CSD system minimizes intervention and enables easy settling and transfer of securities.