Percival proposes a National CSD, especially for emerging markets

2015 / June 15

At WFC Cancun Percival was given the opportunity to discuss with emerging market potential clients the merits of a national CSD. There seems to be a fundamental difference in culture between central bank operations and stock exchange or equity CSDs, and as a result, the practice has developed to implement two separate CSD systems: one for central bank, and one for the private market. In emerging markets, this means that the country as a whole is paying twice for the same piece of infrastructure. More developed countries can afford this, but smaller markets struggle. Central banks in emerging markets should have a close cooperation with the local capital market such that they would outsource their CSD business to a single organisation that would be a national CSD.


From the table below it can be seen that Central Bank transactions are very simple which can be easily incorporated into an Equity CSD/CSDR.


Central Bank
Asset types
A full range of asset types needs to be dealt with including equities, debt (fixed income) instruments
as well as subscription rights, money market instruments and more exotic asset types
Asset types are limited to fixed income debt instruments that can be government or treasury bonds
Corporate events
All possible corporate events known to the industry need to be supported and can include: dividends,
scrip dividends, interest (coupon) payments, redemptions, bonus issues, rights issues, splits, reverse splits (consolidations), conversions, cancellations, registrations (placements), mergers, demergers, change of issuer information, change of instrument information,
squeezes out, share purchase, and market notices, company meetings, IPOs, takeovers
Only corporate events related to servicing debt instruments are relevant, namely: interest (coupon)
payments, and redemptions

DEPEND Example Countries

Below are some of our existing clients using DEPEND to manage the business for the local central bank through an outsourced CSD operation:

Malta Stock Exchange

Started operations in 1991 with 36 government bonds and 3 private listed stocks; they currently provide CSD and secondary market services for all government and treasury bonds and they still have more fixed income assets listed than equities

Trinidad and Tobago Central Depository

Migrated to our DEPEND CSD product in 2011; they handle the secondary market and settlement services for government securities and the system is integrated directly with the central bank’s own registry system


Percival signed a contract with the Norwegian CSD in November 2014 to supply a new core CSD system that is scheduled to start live operation in 2017; they handle all CSDR operations on behalf of the Norwegian Central Bank (Norges Bank)

Diagram of DEPEND National CSD

< Back to news