Nasdaq CSD

Nasdaq CSD is a regional central securities depository serving Estonia, Iceland, Latvia, and Lithuania. It is incorporated in Latvia as a Societas Europaea and has its head office in Riga, with branches in Tallinn, Vilnius, and Iceland. The institution forms part of the Nasdaq group through Nasdaq Nordic and provides core post-trade infrastructure for securities markets in the Baltic region and Iceland. Its principal role is to hold securities in central safekeeping, maintain securities accounts, and facilitate the settlement of transactions in shares, bonds, and other financial instruments. By operating the infrastructure through which securities are delivered and payments are completed, Nasdaq CSD supports the functioning of exchanges, trading venues, investment firms, issuers, custodians, and investors. Its activities are infrastructure-oriented rather than consumer-facing: the organization generally serves financial-market participants and issuers rather than selling products directly to retail customers. Nasdaq CSD also provides issuer and investor services. These include registering newly issued securities, maintaining shareholder registers, administering corporate actions, distributing dividends and interest, supporting stock splits and other corporate events, and facilitating proxy voting and general-meeting processes. It also provides cross-border links to other central securities depositories, market data and statistics, International Securities Identification Number services for Baltic and Icelandic securities, and Legal Entity Identifier issuance services. The organization was created through the consolidation of the Estonian, Latvian, and Lithuanian central securities depositories on 18 September 2017. The restructuring reflected the development of the European Union's Central Securities Depositories Regulation and the rollout of the TARGET2-Securities settlement platform. Nasdaq CSD became the first central securities depository licensed under the EU CSD Regulation and joined TARGET2-Securities for euro-denominated settlement in central bank money. The Icelandic securities depository had a separate institutional history. It began operations in 2000, later became part of the Nasdaq group, and was known as Nasdaq CSD Iceland before being merged into Nasdaq CSD SE in 2020. Icelandic-market settlement migrated to the Nasdaq CSD platform on 24 August 2020, with regulatory approval for the depository to operate in Iceland. Nasdaq CSD's Baltic settlement activity uses TARGET2-Securities and the TARGET2 payment infrastructure for euro-denominated transactions. The Icelandic market uses the local Icelandic-krona settlement arrangements connected to the Central Bank of Iceland's interbank system. The depository is supervised under the applicable European and national regulatory frameworks by authorities in the countries where it operates. As reported for 2024, it held more than €76.9 billion in securities and serviced more than 7,986 issuers. It is also a member of the European Central Securities Depositories Association and the Association of National Numbering Agencies.

Nasdaq CSD emerged from the consolidation of central securities depositories established in the Baltic states after the restoration of their independence in the 1990s. Lithuania launched its Central Securities Depository of Lithuania in 1994, while comparable national institutions were created in Estonia and Latvia. These organizations supplied the basic infrastructure required for newly developing national capital markets: registering securities, maintaining ownership records, and settling transactions between market participants. During the 2000s, the Baltic depositories became part of the Nasdaq group while continuing to operate as separate national institutions. The evolution of European financial-market regulation and the increasing integration of the Baltic markets encouraged Nasdaq to replace the separate structure with a regional model. On 18 September 2017, the Estonian, Latvian, and Lithuanian depositories were merged into Nasdaq CSD SE, a Societas Europaea registered in Riga. Riga became the head-office location, while Tallinn and Vilnius retained branch operations. The consolidation was closely associated with the European Union's Central Securities Depositories Regulation and the creation of TARGET2-Securities, the Eurosystem platform for securities settlement. Nasdaq CSD became the first central securities depository licensed under the CSD Regulation. It also joined TARGET2-Securities, enabling euro-denominated transactions in the Baltic markets to settle in central bank money through the European settlement infrastructure. This integration reduced the need for separate national post-trade arrangements and supported cross-border activity among the Baltic markets. The Icelandic securities depository followed a distinct path before becoming part of the regional entity. Known in Icelandic as Verðbréfaskráning Íslands hf., it began operations on 29 June 2000. It was established by the Central Bank of Iceland and Icelandic market participants. OMX AB acquired the institution in 2006; OMX subsequently became part of the Nasdaq Nordic group in 2007. In 2015, the Icelandic institution adopted the Nasdaq CSD Iceland name. Nasdaq announced the merger of Nasdaq CSD Iceland into Nasdaq CSD SE on 25 May 2020. The Icelandic market's settlement system migrated to the Nasdaq CSD platform on 24 August 2020, following regulatory approval under the EU CSD framework for operations in Iceland. The Icelandic branch continues to use local Icelandic-krona settlement arrangements connected to the Central Bank of Iceland's interbank system, while Baltic euro settlement is connected to TARGET2-Securities and TARGET2. Today, Nasdaq CSD operates as a regional post-trade institution with a head office in Riga and branches in Estonia, Lithuania, and Iceland. Its functions include central safekeeping, securities-account maintenance, settlement facilitation, securities issuance registration, shareholder-register administration, corporate-action processing, proxy voting and general-meeting services, cross-border CSD links, market data, and identification services. The institution is responsible for issuing and monitoring International Securities Identification Numbers for Baltic and Icelandic securities and also provides Legal Entity Identifier issuance. It operates under the supervision of the relevant financial authorities and central bank arrangements in its markets. According to 2024 information cited in reference material, the depository held more than €76.9 billion in securities and serviced more than 7,986 issuers.

• 2020

  Icelandic operations are integrated

  [1]Nasdaq CSDen.wikipedia.org

  Nasdaq CSD Iceland was merged into Nasdaq CSD SE, and Icelandic settlement migrated to the Nasdaq CSD platform on 24 August.

• 2017

  Baltic depositories merge into Nasdaq CSD SE

  [1]Nasdaq CSDen.wikipedia.org

  On 18 September, the Estonian, Latvian, and Lithuanian central securities depositories were consolidated into Nasdaq CSD SE, headquartered in Riga.

• 2017

  Nasdaq CSD joins TARGET2-Securities

  [1]Nasdaq CSDen.wikipedia.org

  The depository joined TARGET2-Securities to support euro-denominated settlement in central bank money for the Baltic markets.

• 2015

  Icelandic institution adopts the Nasdaq CSD Iceland name

  [1]Nasdaq CSDen.wikipedia.org

  The Icelandic securities depository changed its name to Nasdaq CSD Iceland.

• 2006

  OMX acquires the Icelandic depository

  [1]Nasdaq CSDen.wikipedia.org

  OMX AB acquired all shares in the Icelandic securities depository, bringing it into the corporate lineage that later became part of Nasdaq Nordic.

• 2000

  Icelandic securities depository begins operations

  [1]Nasdaq CSDen.wikipedia.org

  The Icelandic securities depository began operations on 29 June 2000 after being established by the Central Bank of Iceland and local market participants.

• 1994

  Lithuania establishes a central securities depository

  [1]Nasdaq CSDen.wikipedia.org

  The Central Securities Depository of Lithuania began operations as part of the development of post-independence Baltic capital-market infrastructure.

Regional post-trade infrastructure provider and central securities depository for the Baltic and Icelandic capital markets.

• Post-trade infrastructure

  Central securities depository services

  Nasdaq CSD provides central safekeeping of securities and maintains securities accounts for market participants. It supports the settlement of shares, bonds, and other financial instruments across the Baltic and Icelandic markets, helping ensure that securities and corresponding payments are transferred in an orderly and legally recognized manner.

• Securities administration

  Issuer and investor services

  The service portfolio includes registration of new securities, shareholder-register maintenance, distribution of dividends and interest, and administration of corporate events such as stock splits. Nasdaq CSD also supports proxy voting and general-meeting processes, linking issuers with the ownership and settlement records maintained by the depository.

• Market infrastructure services

  Cross-border and identification services

  Nasdaq CSD operates links to other central securities depositories and provides securities-identification and entity-identification services. It is responsible for issuing and monitoring ISINs for Baltic and Icelandic securities and also provides a Legal Entity Identifier issuance service, alongside market data and statistical information.

• 2020

  Integration of Nasdaq CSD IcelandM&A

  Background

  The Icelandic securities depository had operated as a Nasdaq-affiliated institution under the Nasdaq CSD Iceland name.

  Action taken

  Nasdaq CSD Iceland was merged into Nasdaq CSD SE, and Icelandic settlement migrated to the Nasdaq CSD platform.

  Aftermath

  Nasdaq CSD expanded its regional operating scope to Iceland while retaining local Icelandic-krona settlement arrangements.

  Source

• 2017

  Consolidation of the Baltic central securities depositoriesM&A

  Background

  Separate national depositories operated in Estonia, Latvia, and Lithuania, while European regulation and the TARGET2-Securities project encouraged more integrated post-trade infrastructure.

  Action taken

  Nasdaq merged the three Baltic institutions into Nasdaq CSD SE, a Societas Europaea registered and headquartered in Riga.

  Aftermath

  The new regional depository received authorization under the EU Central Securities Depositories Regulation and connected Baltic euro settlement to TARGET2-Securities.

  Source

1. 1Nasdaq CSDen.wikipedia.org