Information disclosed on this website for the purposes of risk assessment pursuant to Article 34(5) of Regulation (EU) No 909/2014 (CSDR) includes:

Further, following documentation will be made available to participants upon written request through

  • Link agreements entered into by Nasdaq CSD
  • Risk assessment questionnaires obtained from the counterparties of link arrangement
  • Legal opinions regarding key legal aspects with regard to settlement systems of Nasdaq CSD (legal nature of entitlements, protection of collateral, liability of the CSD and settlement finality).

Nasdaq CSD does not warrant use of its services to be fully free of IT, operational, legal or other types or sources of risk. In particular, Nasdaq CSD does not guarantee that its services are completely uninterrupted.

IT and operational risks

Provision of Nasdaq CSD services by Nasdaq CSD relies heavily on IT infrastructure, including critical components such as Nasdaq CSD’s system, T2S platform as well as associated network solutions and services. Temporary interruption or unavailability of services due to circumstances beyond reasonable control of Nasdaq CSD cannot be ruled out regardless of IT security and risk reduction measures implemented by Nasdaq CSD.

Legal risks

Regional reach of Nasdaq CSD activities means that EU law (in particular level I and II of CSDR) as well as national laws of multiple Member States (in particular Estonia, Iceland, Latvia or Lithuania) can apply to its services and stakeholders’ rights, including rights of participants and investors. While the operational model and rules of Nasdaq CSD have been designed to minimize any legal risks, including risk of conflict of laws, no guarantee can be provided against situations where the law is ambiguous or where its consequences or implications are unclear. When assessing legal risks due consideration should be given to the fact that CSDR-adaptations of national laws are very recent.

Limitations of liability provided in section 2.11 of Chapter I of Rules of Nasdaq CSD should be carefully considered when contemplating the use or using any of Nasdaq CSD services provided by Nasdaq CSD.

Settlement operations


Under protection of SFD transposition of Estonian, Icelandic, Latvian and Lithuanian law, Rules of Nasdaq CSD clearly define the moments of settlement finality (known as SF I, SF II and SF III).


Settlement finality aspects of Transfer Orders settled in T2S (T2S Transfer Orders) follow among others collective agreement concluded between the Eurosystem and contracting CSDs of T2S FWA.

Risk profile of T2S Transfer Orders and related settlement operations is further determined by T2S procedures and features (DvP settlement in CeBM through DCAs in case of DvP, technical netting with optimization) that are applied or made available in accordance with T2S Rules and Rules of Nasdaq CSD.

USD settlement service

Nasdaq CSD participants that use or contemplate using USD settlement service provided through Latvian Settlement System are invited to consider below aspects.

Following features and measures are designed to reduce or control the risks stemming from USD settlement service:

  • Requirement to pre-fund cash leg of the settlement by the Participant to Nasdaq CSD’s USD cash account provider;
  • Application of RTGS technique (versus netting);
  • Application of special procedure supported by T2S (Conditional settlement feature of T2S);
  • No overnight cash balances at Nasdaq CSD’s USD cash account;
  • Selection of Nasdaq CSD’s USD cash account provider: only authorized credit institution shall be used by Nasdaq CSD as USD cash account provider;
  • Liability limitation regime in the Rules of Nasdaq CSD (see 2.11.5 of Chapter I of the Rules).

Above features and measures reduce the risk exposure of Nasdaq CSD to operational risks (e.g. error in releasing settlement of securities leg).

USD settlement model provides certain exposure to credit and insolvency risks to the participants in the events of:

Insolvency of Nasdaq CSD’s USD cash account provider

Occurrence of this scenario would mean that Nasdaq CSD is unable to complete the settlement of cash leg as it cannot transfer the cash from its USD account (with Nasdaq CSD’s USD cash account provider) to the cash receiving Participant’s Cash Agent. Note that Nasdaq CSD would not assume liability for funds delivered to this account (see section 2.11.5* of Chapter I of the Rules).

Participants are invited to consider and monitor suitability of the risk profile of Nasdaq CSD’s USD cash account provider at their own risk. Participants are invited to stop the use of the service should credit rating or other circumstance relating to Nasdaq CSD’s USD cash account provider fall below their risk appetite.

Insolvency of the receiving Participant’s Cash Agent.

Occurrence of this scenario would mean that Cash receiving Participant is unable to collect cash proceeds from the transaction regardless of the completion of the settlement by Nasdaq CSD (including final step, which is cash sweep from Nasdaq CSD’s USD cash account).

Nasdaq CSD considers this risk to be under full responsibility of the participant as it is free to choose and reconsider its Cash Agent by applying its own risk control framework towards its Cash Agent as well as any other credit institution belonging to participant’s payment collection chain.

International settlement services

Participants that use or contemplate using international settlement services (links) provided by Nasdaq CSD as investor CSD are invited to consider that holding securities via Nasdaq CSD in issuer CSD is subject to link agreement between Nasdaq CSD and issuer CSD, and Rules of Nasdaq CSD, including limitation of liability provided in section 2.11.4 of Chapter I of the Rules.