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.