LeoGlossary: Central Securities Depository (CSD)

An entity that:

enables securities transactions to be processed and settled by book entry
provides custodial services (e.g. the administration of corporate actions and redemptions)
plays an active role in ensuring the integrity of securities issues. Securities can be held in a physical form or in a dematerialized form, i.e. electronic records.

Securities holdings can come in two forms:

direct: each beneficiary owner has an account
indirect: intermediaries such as custodians or brokers hold securities on behalf of clients.

Often a CSD will also serve as a securities settlement system (SSS).