Loading the context…
Loading the context…
A system that keeps securities ownership records and supports the processing and settlement of securities transactions.
Save conceptA central securities depository is infrastructure for recording and administering securities, such as debt instruments. Its records help establish who holds an instrument and process changes when it is issued, transferred or repaid. This differs from a stock exchange, whose trading arrangements bring together buyers and sellers. A depository handles the record and processing functions needed after the transaction has been agreed.
BOJ describes JamClear-CSD as the authentic ownership record for its own and Government of Jamaica domestic securities. Its functions include registering auction results, purchases and sales, and administering interest and repayments. Funds settlement takes place through JamClear-. The securities record and the money transfer are related parts of completing a transaction, but they perform different jobs.
Suppose a dealer sells a security it holds to another participating institution. The agreed transaction requires the securities record to change and the buyer to make the payment due. The depository processes the securities side under its rules, while the linked payment infrastructure handles the funds. This example describes the functions; the particular timing and safeguards depend on the system’s operating rules.
An accurate ownership record does not ensure that an investment will gain value or that its issuer will meet every obligation. The security’s price, repayment terms and issuer still matter. Likewise, access to a depository normally follows participation and intermediary rules; it does not mean that every individual investor can submit instructions directly to the central system.
BOJ offers US$30 million with limits on resale pricing and recipients
BOJ allocates J$37 billion in CD auction at 6.44% average yield