A Nasdaq CSD participant or investor acting through a Nasdaq CSD participant may open in its name various types of operational accounts used only for the aggregate accounting of securities in those settlement systems where the participant has acquired the status of a system participant. A legal account for securities of the same ISIN is created upon the first credit of the respective securities for the benefit of the holder of the operational account.
Nasdaq CSD offers account types which can be held with any settlement system:
– nominee accounts (in the name of Nasdaq CSD participant or the client of the participant);
– participant own account;
– owner accounts (in the name of the end investor).
Each legal account has a unique account number composed of:
- the number of the operational account, which determines the account type and the legal implications of holding securities in the account (such as the level of asset segregation and entitlement to securities, where applicable); and
- the ISIN of the securities credited for the benefit of the holder of the operational account, which determines the settlement system in which the securities are initially recorded and, hence, the law applicable to the securities holding.
Securities registered at Nasdaq CSD are held within the settlement system in which the securities are registered. Securities held at Nasdaq CSD as an investor CSD, through a CSD link arrangement with a linked CSD, are deemed to be held in the default settlement system of the account operator, unless the account operator has selected a different default settlement system for that specific operational account. Thus, the proprietary aspects (entitlement to securities, pledge rights and other direct or indirect rights in securities) of securities held by the account holder with the:
- Estonian Settlement System are governed by Estonian law;
- Icelandic Settlement System are governed by Icelandic law;
- Latvian Settlement System are governed by Latvian law;
- Lithuanian Settlement System are governed by Lithuanian law.