The Nasdaq CSD operates three securities settlement systems (the Estonian SSS, the Latvian SSS and the Lithuanian SSS), each with a national jurisdiction: in Estonia, Latvia and Lithuania, respectively.
The outsourcing of matching and settlement services to T2S via the three systems is serviced by a single IT platform which offers the same procedures for all the systems.
A participant’s operational account (securities account) in the CSD system displays, in consolidated form, the balance of all legal accounts associated with the participant within one or more SSSs. The depository accommodates a variety of combinations of legal accounts to enable the SSSs to form a single securities account, but a securities account may always only contain an aggregation of legal accounts of a single type – either segregated nominee accounts, nominee accounts, or owner accounts.It is only a participant’s legal account within a specific SSS that establishes the participant’s legal entitlement to a security (whether an ownership entitlement or a custody holding entitlement for the benefit of a client).
One legal account is associated with only one securities account in the same category as the legal account. A legal account is identified by means of:
- the account number of the relevant securities account; and
- the ISIN of the relevant security held in that legal account (used to attribute the securities to the legal account in the Estonian, Latvian or Lithuanian SSS). Settlements of securities transfers in an SSS take place according to the law applicable to the SSS to which the legal account belongs.
A Nasdaq CSD participant may have Latvian, Estonian and Lithuanian instruments in its securities account, which means that there would be three legal accounts – one in each respective SSS.
From the operational perspective, each securities account constitutes a single account in T2S. For legal and settlement finality purposes, all positions of securities in securities accounts (Estonian, Latvian and Lithuanian ISINs) are attributed to the legal accounts held in the respective SSS. Any T2S-eligible securities settlement transaction performed in an SSS via a securities account is settled in T2S.