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;
- 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 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 Nasdaq CSD System. Nasdaq CSD 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.
To further offering Nasdaq CSD Iceland merged with Nasdaq CSD in May 2020 creating a bigger and more robust CSD:
- The Nasdaq CSD Group operates regional central securities depositories in the Baltics and Iceland, with a business presence in Estonia, Iceland, Latvia, and Lithuania.
- Nasdaq CSD has integrated Nasdaq CSD Iceland into its harmonized CSDR compliant governance and operational model, ensuring safer and more efficient post-trade services in the Icelandic market in accordance with internationally recognized standards.
- The final step in the merger of Nasdaq CSD Iceland with Nasdaq CSD SE (Nasdaq CSD) took place on August 24, 2020, with the successful technical migration of the Icelandic securities market to the Nasdaq CSD SE (Nasdaq CSD) securities settlement platform.