Currently in Slovakia there are two operating CSDs – the “old CSD” Central Securities Depository (CDCP) and the “new CSD” National CSD (NCDCP). Both register the same types of securities and provide the same services for the market participants. On 21st February, 2020, they both have issued a press release where they confirmed their intention to consolidate into one single CSD. Both CSDs have signed a Memorandum of Understanding and Cooperation, signed also by their shareholders – Bratislava Stock Exchange and Slovak Guarantee and Development Bank.
The consolidation project will be assisted by international advisory company KPMG. The project will run under the supervision of the National Bank of Slovakia and the Ministry of Finance of Slovak Republic. Capital market participants will be also involved.
CSDs and the shareholders declared a guarantee that the process of unification of both CSDs will not influence their services that will be fully provided in accordance with applicable legislation and by any means will not affect the stability of the capital market in Slovakia. All rights of participants, including the foreign participants, will be secured.
The aim of the project is to create a single modern CSD which will provide services on a high professional level in the Slovak Republic, in accordance with European laws and international standards.
Impact on investors: Transformation of the old CSD and the new CSD into single CSD was confirmed by signing of the Memorandum of Understanding and Cooperation, UniCredit will advise clients with further developments as they become available.