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Records and Settlement

The Central Securities Depository Prague (CSD Prague) is mainly responsible for keeping the central register of dematerialised securities and the settlement of trades in investment instruments.

The Central Register records all dematerialised securities issued in the Czech Republic. The Central Register is a two-stage register composed of a register kept by the Central Securities Depository and the follow-up records maintained by the so-called CSD Prague participants, i.e. especially securities trading participants.

The securities are recorded on two types of asset accounts. The first type is the owner’s account held by the securities owner. The second type is the customer account held by a CSD Prague participant who, however, does not own the securities registered on this account but manages these securities based on authorization from their owners. While owner accounts and customer accounts may be opened within the Central Register kept by the Central Securities Depository, the follow-up records may only contain owner accounts.

The Central Securities Depository also keeps an independent register of securities, including especially foreign securities, certificates, collective bonds, derivative investment instruments and separately also the government savings bonds for the Czech Ministry of Finance.

The Central Securities Depository arranges for the financial settlement of exchange and OTC securities trades concluded at the Prague Stock Exchange.

The Central Securities Depository operates on a participation principle, and its services associated with the registration of securities and settlement of trades are rendered through participants only.

Other Services

The CSD Prague assigns international securities identification numbers (ISIN) to investment instruments and acts as a local operating unit (LOU) and assigns Legal Entity Identifiers (LEI) to legal entities.

CDD Prague offers the so called dematerialisation of securities, i.e. registeration of dematerialised securities to issuers, including those who are in the process of converting their securities to dematerialised securities.

Users from the domain of public authorities, issuers, aministrators and others may register to the Central Depository’s information system (ISB) and they may take advantage of obtaining information via secured feeds.

In addition to these services, the CSD Prague also offers other services to its participants, securities issuers and other parties involved in the capital market, such as the administration of foreign securities registered on CSD Prague accounts in Clearstream, the payment of yields from securities or the services of national and foreign securities lending.

History

The Central Securities Depository Prague has been operating on the capital market since the founding of the Stock Exchange Security Register in 1993; the Register was later transformed in 1996 to the joint-stock company UNIVYC. In 2010, the company took over the records of the Securities Centre and commenced the activities of a central depository under the name of Centrální depozitář cenných papírů, a.s. (Central Securities Depository), which is a member of the European Central Securities Depositories Association (ECSDA).

PX Group and CEESEG

The Central Securities Depository Prague is a fully owned subsidiary of the Prague Stock Exchange.

It is part of the PX Group, the most prominent members of which are, in addition to CSD Prague, the Prague Stock Exchange. The Prague Stock Exchange is the largest and oldest organizer of the securities market in the Czech Republic, with trades conducted through licensed traders, who are also Exchange members. PX Group also co-operates with POWER EXCHANGE CENTRAL EUROPE (PXE) which offers power and gas trading.

As a subsidiary of the Prague Stock Exchange, the Central Securities Depository is also a member of the CEESEG together with the Vienna Stock Exchange (Wiener Börse).