Regulatory Alerts2024-11-14
CSD Regulations: Deposit, Settlement, and Clearing
The Securities and Exchange Commission issued the 2022 CSD Regulations to standardize the deposit, settlement, and clearing of securities in the OTC market. The rules mandate that all investors and brokers must obtain unique investor numbers and open dedicated trading accounts to facilitate electronic transactions. Furthermore, the regulations establish strict procedures for the electronic registration of share ownership, the transfer of securities between accounts, and the calculation of settlement balances to ensure market integrity.
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