Participants of the Latvian Central Depository

The Latvian Central Depository (LCD) eligible participants are: 

• banks; 
• brokerage companies and investment management companies; 
• issuers – exclusively for own financial instruments and only in primary public placement, subsequent to registering the financial instruments with LCD;
• other – government, the Bank of Latvia, the stock exchange, Privatization Agency.

The procedure to be followed by a financial intermediary applying for a LCD participant status is described in the LCD Rules No. 1.

The status of a LCD participant may be obtained for the following purposes:

• to provide custody and services for the financial instruments registered with LCD;
• to provide settlement for transactions of financial instruments registered with LCD and for corporate actions with regard to financial instruments;
• to provide cash clearing for transactions in financial instruments registered with LCD and for corporate actions with regard to financial instruments.

Requirements to financial intermediaries - participants of the Latvian Central Depository:

• a valid license issued by the Financial and Capital Market Commission (FCMC) for providing investment financial services and authorizing to provide custodian services, or a license for operations of a credit institution;
• key officials of a participant (board and council members) and employees acting on behalf of the participant in transactions with financial instruments should have impeccable reputation, sufficient competency and expertise in investment matters, so that they can act as intermediaries in the financial instruments market;
• a valid job contract with at least two individuals who have passed LCD qualification examinations.