The Nasdaq CSD provides the following services through its Settlement Systems:
- Settlement of stock exchange trades;
- Matching of OTC transactions;
- Settlement of free-of-payment (OTC FoP) transactions;
- Settlement of delivery versus payment (OTC DvP) transactions;
- Settlement of cross-border stock exchange and OTC transactions under CSD link arrangements.
The Nasdaq CSD executes account holders’ settlement instructions only if the account operators have fulfilled all the requirements set out in the Rulebook and Operating Manual.
The Nasdaq CSD system’s functionality is developed to serve CSD operations both in and out of TARGET2-Securities (T2S), the single pan-European platform for securities settlement in central bank money. Matching and settlement functions are outsourced to T2S for T2S-eligible securities and processed in the CSD system for other securities. A single IT platform services the outsourcing of matching and settlement to T2S via the CSD’s three securities settlement systems, with the same procedures for all of the SSSs.
The Nasdaq CSD is a party to the T2S Framework Agreement (FWA), thus settlement services for T2S-eligible securities are provided, among other things, in keeping with the T2S FWA and the T2S Rules. This also means that all securities accounts in the depository’s settlement systems, along with their balances, shall be operated on the T2S platform unless expressly stated otherwise.
The depository provides settlement of the cash leg of DVP transactions and distribution of corporate action proceeds only in euro currency in central bank money (CeBM). The cash leg of DVP transfer orders for T2S-eligible securities is settled via dedicated cash accounts (DCAs) at payment banks in T2S, while the cash leg of DVP transfer orders for non-T2S-eligible securities settled via a cash account in T2 (the real-time gross settlement system owned and operated by the Eurosystem).