Hossein Fahimi, CEO of the Central Depository and Settlement Company, said since about 40 years ago, the deposit industry independently has played a prominent role in the capital markets of countries. In previous periods, this industry was somehow integrated in the heart of stock exchanges and executive institutions, which later emerged as an independent institution and took on duties and responsibilities uniquely in the capital markets of countries.

Regarding ‘Traditional Function’ he mentioned there are two parts:

Pre-transaction operations: pre trade

Registry: The registration and maintenance of financial assets are the responsibilities of this institution, which is responsible for the maintenance of assets through new standards and a main support site, and these assets are kept only in this institution.

Depository (safe keeping): The ability to trade assets after a series of judicial and quasi-judicial actions and actions resulting from non-deposit of assets, which allows a part of the assets to be traded and sent to the system.

CA (corporate action): Corporate actions include transfers and changes in assets that are made outside of transactions and as an exception to transactions and lead to changes in shareholder shares.

“In order a person to be able to trade, before trading the above three steps must be taken to enable the transaction. After preparing this information and sending it to the stock exchange, during trading hours and in trading sessions in different ways, the transaction is made and then the operation starts after the transaction” he said.

Dr. Fahimi stated the new activities of the deposit industry in the world called Value added services by CSDs

-E.kyc: Electronic Customer Identification Services
-kyc: chain is identified by the customer only once and then used for all financial institutions.
-Eagem: Electronic assembly services in large and small countries are provided by depository companies.
-Dividen distribution: Depository companies generally receive securities income from issuers and work on the account of securities holders.
-Custody Services: Services that are provided for shareholders, which are mainly based on order consolidation and sending integrated orders to the system and performing corporate affairs in a centralized manner.
-Trusty helps a lot in payment.
-New Asset Type Services (ALTERNATIVE assets): Depositors provide services for new assets, for example, in our country, coin deposit certificates and fund units, which are registered and kept in centralized manner in investment companies. .

At the end, he said the Central Depository and Settlement Company was established in 2005 under the name of self-regulatory organization, so it is one of the pillars of the capital market and its main mission is branding in the field of protection and safeguarding of people's assets.