Central Securities Depository Prague opens for business
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7/6/2010
The Central Securities Depository Prague (CSD Prague)
today successfully completed the transfer of the records of
dematerialized and immobilized securities from the Czech
Securities Centre (Středisko cenných papírů, SCP). This
marked the last step towards the commencement of the
activities of the Central Depository, which will open for
business on 7 July 2010.
Preparations for the launch of the Central Securities
Depository started immediately after a licence was granted
on 14 August 2009 by the Czech National Bank to UNIVYC,
a.s., a subsidiary of the Prague Stock Exchange (member of
CEE Stock Exchange Group). In December 2009, an agreement
was signed between the Central Securities Depository and the
Ministry of Finance for the transfer of the records of
securities maintained in the Czech Securities Centre. This
was the beginning of the technical preparations of the
trading members and other parties which have become
participants in the Central Depository. "Thanks to the
professional attitude and 100% commitment of all the parties
involved, both on the side of the Central Securities
Depository and on the side of the future participants, it
was possible to meet the original deadline for the
commencement of activities, i.e. mid-2010,” says Helena
Čacká, Chief Executive Officer of Centrální depozitář
cenných papírů, a.s.
The Central Depository introduces a series of innovations to
the Czech capital market. The main change is that the
Central Depository is now capable of maintaining multi-stage
recording of investment instruments, thus enabling a
standardized trade settlement to be introduced, something
which has become widespread in other European countries.
Account owners will also appreciate the better availability
of services associated with the operation of their accounts.
These services will now be offered directly by the
participants in the Central Securities Depository, through
their branch networks.
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