Iran, Korea CDS Companies to sign MoU
Azerbaijan, Baku, July.30/ Trend R.Zamanov
Central Securities Depository of Iran and Korea Securities Depository will sign a memorandum of understanding on September 15, Fars news agency reported.
The two companies plan to connect Iran and South Korea's capital markets.
Iran has connected its capital market with Pakistan, Turkey, and Indonesia.
Once Iran connects its capital market with Korea, Iranian costumers will be able to sell their shares on Pakistan bourse and instantly buy the shares of a company in Korea or Indonesia.
A Central Securities Depository (CSD) is a specialist financial organization holding securities such as shares either in certificated or uncertificated (dematerialized) form so that ownership can be easily transferred through a book entry rather than transfer of physical certificates.
This allows brokers and financial companies to hold their securities at one location where they can be available for clearing and settlement. This is usually done electronically making it much faster and easier than was traditionally the case where physical certificates had to be exchanged after a trade had been completed.
In some cases these organizations also carry out centralized comparison, and transaction processing such as clearing and settlement of securities.