Nasdaq CSD was established in 2017 as a result of a cross-border merger of the three local CSDs:
- Akciju sabiedrība “Latvijas Centrālais depozitārijs” in the Republic of Latvia;
- AS Eesti Väärtpaberikeskus in the Republic of Estonia; and
- Lietuvos centrinis vertybinių popierių depozitoriumas in the Republic of Lithuania.
Nasdaq CSD is authorized under the CSDR and is supervised by the Baltic regulators cooperating in accordance with the CSDR. The consolidation was carried out in the form of a cross-border merger to ensure transferability of the current business and contractual relations of the Baltic CSDs.
The merger of the three Baltic CSDs involved the following milestones:
- Nasdaq Nordic Ltd acquired 100% of shares in the Latvian depository from Nasdaq Riga AS and became the sole shareholder of the Latvian depository;
- In May 2016 the Latvian depository acquired 100% of shares in the Lithuanian depository from Nasdaq Vilnius AB (8%) as well as Nasdaq Helsinki (92%) and 100% of shares in the Estonian depository from Nasdaq Tallinn AS;
- In February 2017 the Latvian depository, the Estonian depository and the Lithuanian depository concluded a merger agreement;
- The Lithuanian depository and the Estonian depository were merged into the Latvian depository via an upstream merger, and the Latvian depository assumed the rights and obligations of the Estonian depository (through its Estonian branch) and the Lithuanian depository (through its Lithuanian branch);
- On September 18, 2017, the Nasdaq CSD launched a new core CSD System. The system is integrated with TARGET2-Securities which enables the Baltic markets and market participants to meet the upcoming changes in the securities industry, including developments pursuant to pan-European legislation, standards and other harmonization initiatives.