The Central Securities Depository (CSD) is one of Australia’s most important settlement and depository systems, holding more than 95 per cent of Australian fixed income securities and more than 85 per cent of commercial paper. More than A$20 trillion dollars is settled through the CSD every year.
It provides a wide range of depository services, including full delivery versus payment (DvP) settlement, real-time gross settlement, and confirmation and settlement of foreign exchange, forward rate agreements and swaps.
The CSD provides settlement and depository services for a wide range of financial instruments, including:
- fixed income securities
- foreign exchange confirmations
- forward rate agreements
- short-dated money market instruments (bills, certificates of deposit and promissory notes)
The CSD also provides full DvP functionality, enabling simultaneous gross settlement of securities with cash. Debt instruments may be lodged either electronically or physically.
Foreign exchange confirmation and settlement
As well as securities settlement, the CSD offers an independent, electronic and competitively priced confirmation and settlement service (for the A$ leg) for spot and forward foreign exchange deals. This reduces operational risk, decreases processing costs, and improves the speed and reliability of foreign exchange confirmations for financial institutions and their customers.
The CSD also provides access to investment-grade Australian dollar denominated securities deposited with international central securities depositories such as Euroclear and Clearstream. This allows participants to settle Australian dollar denominated Eurobonds on the books of Austraclear in the same manner as domestic securities.
To find out more about accessing the CSD, contact us.