IMF How To Notes

How to Organize Central Securities Depositories in Developing Markets: Key Considerations

By Froukelien Wendt, Peter Katz, Alice Zanza

February 4, 2019

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Froukelien Wendt, Peter Katz, and Alice Zanza. How to Organize Central Securities Depositories in Developing Markets: Key Considerations, (USA: International Monetary Fund, 2019) accessed October 8, 2024

Summary

The key objective of this note is to support authorities in their decision making about the optimal organization of central securities depositories (CSDs) in their country. For the purpose of this note, a CSD is defined as an entity that provides securities accounts, a securities settlement system, and central safekeeping services to market participants, which can be banks and other financial institutions. Authorities in developing markets, in particular central banks, may grapple with two questions: (1) whether to pursue a single CSD to increase market efficiencies and benefit from economies of scale and scope and (2) whether to partake in the governance of the CSD as owner or operator. This note presents seven considerations for authorities to take into account when answering these questions and determining the best model for their country.

Subject: Central securities depositories, Financial institutions, Financial markets, Government securities, Securities, Securities markets, Stock markets

Keywords: Asia and Pacific, Authorities in the Kyrgyz Republic, Authorization of the CSD, BNR authorities, Cash settlement, Central securities depositories, ConsiderationsHow-To note, CSD operation, CSD operator, CSD technology, Debt management, Develop market, Europe, FADHTN, Financial market, Fixed cost, Global, Government securities, Government securities market, HTN, Key consideration, Key ConsiderationsHow-To note, Organize Central Securities depository, Ownership structure, Philippines government, Private sector, Securities, Securities markets, Single CSD, Stock markets

Publication Details

  • Pages:

    27

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    How-To Note No. 2019/001

  • Stock No:

    HTNEA2019001

  • ISBN:

    9781484397312

  • ISSN:

    2522-7912