A Central Securities Depository (CSD) is a type of Financial Market Infrastructure (FMI) that provides the centralized safekeeping of financial assets/securities. It is responsible for maintaining and managing accounts for these assets, including their transfer and the effective ownership control. In summary, the CSD maintains the record of asset characteristics under its custody, ensuring their integrity for counterparties involved in transactions.

The CSD´s Powers and duties in Brazilian financial market:

1. Centralized custody of times deposits and securities

• Maintains centralized custody of times deposits (fungible and non-fungible);

• Ensures the integrity and security of times deposits under its custody;

• Segregates investor’s times deposits, maintaining them under a fiduciary
  ownership regime.

2. Control and registration of transactions

• Registers the issuance of new securities;

• Registers and controls the ownership of securities and times deposits in book-entry form;

• Enables the transfer of ownership of securities and times deposits between investors;

• Records, establishes, and releases liens, encumbrances, and guarantees
  on securities and times deposits;

• Ensures the reliability and security of transactions.

3. Transparency

• Provides account statements and balances to members;

• Makes information available to issuers and registrars regarding deposited securities;

• Ensures confidentiality regarding the securities and times deposits belonging to
  each investor.