General Information

Nasdaq CSD Iceland (NCSDI) is one of the principle participants on the Icelandic securities market. NCSDI is a notary, a depository and a clearing house for the settlement of securities in dematerialized form.  It guarantees the accuracy of information in the SSS.

Nasdaq CSD Iceland hf. was established in June 1997 by all the market participants. NCSDI received its operating license from the Ministry of Commerce on June 9th, 2000 and commenced operation on June 14th 2000. On December1st 2006 NCSDI became a 100% subsidiary of OMX Group. From February 2008 NCSDI has been owned by Nasdaq which is an American company that owns and operates 26 markets, 1 clearing house and four central securities depositories.  Nasdaq's headquarters are located in New York.  Further information is on 


NCSDI system holds equities, fixed income and funds in a book entry form. All trades executed on the Exchange in dematerialized securities are cleared and settled through NCSDI. All members of NCSDI can be connected directly to the system, but only specific members can do transfers within the system. NCSDI is subject to  Act. No. 131/1997 on electronic registration of rights of title to securities and regulation no. 397/2000. NCSDI operations are subject to the supervision of the Icelandic Financial Supervisory Authority. Holdings are primarily in the name of the beneficial owner. However nominee accounts are allowed according to NCSDI is a National Numbering Agency for Iceland and a member of ANNA the Association of National Numbering Agencies.  All securities issued in NCSDI system or listed on the Stock Exchange have been given ISIN numbers in accordance with international standards.  


The CSD's role

  • To provide centralized registration and a notary services of dematerialized securities

  • To operate and maintain a designated Securities Settlement System in accordance with best market practices, international standards and national laws and regulation

  • To ensure safe and reliable securities settlement along with the Central Bank in Iceland

  • To maintain securities accounts at the top tier level

  • To provide shareholders registry, corporate actions and income collection services to issuers

  • To assign ISIN codes as a National Numbering Agency 


Services provided 

Services to issuer 

Registered companies have access to service provided by NCSDI, including central management for issuance of shares, funds units or bonds.  All companies, publicly or privately owned, can register at NCSDI.  All information regarding cost and necessary documents will be sent by request. NCSDI services to issuers includes corporate actions, income collection and information services.    Also NCSDI maintains records and offers issuers access to shareholders registry via special link so they can keep their records up to date.

Services to investors
The services offered to investors through Account operators includes opening and closing of an account, pledging and payment of dividends and interest, issuing information about holdings and allocations.  All account holders has to open an account in their own name at NCSDI but they can also register in a nominee account through NCSDI Members.

As of October 24th, 2002 the Nasdaq CSD Iceland and VP of Denmark established a link between the two companies making it possible for investors to register ownership in Danish securities in Iceland and vice versa.  It implies that a registered investor with NCSDI can hold Danish securities in his Icelandic account and receive dividends payments and other services in same manner as they were still in Denmark.  In additionl it will enable the investor to buy and sell Danish stocks and bonds in Iceland.


Clearing and settlement

Depository clearing

Nasdaq CSD Iceland is a registry, a depository and a clearing house for the settlement of securities in dematerialized form in the Icelandic market.   The system is open on weekdays from 8:30 -17:00.


Trade reporting system

The TRS system is maintained by NCSDI.  Members of NCSDI have authorisation to allocate on/off Exchange trades through the TRS system. The settlement cycles are two, the first one is at 11.45 and the second one at 15:00.  

Settlement for NCSDI members takes place through the TRS system and cash settlement is done through the Central Banks RGTS


Third party trades

Custodian settlement transactions for third parties are not DVP on the Icelandic market. Settlement instructions are received by participants and are pre-matched between agents on S through telephone. When a trade is matched and ready for settlement, the buyer´s agent executes the cash transaction. After receipt of cash the seller´s agent releases the securities to the buyers transfer zone at NCSDI where the buyer´s agent receives them and deposits the relevant securities account. Market tolerance is ISK 2.500. If the amount deviates within the permitted limit the transaction is settled at the price indicated by the seller.

Netting is not allowed as cash and securities move separately on a trade by trade basis.

Pre-matching criteria:

  1. Trade day
  2. Settlement day
  3. Identification of Securities (ISIN Code)
  4. Quantity of securities
  5. Receiving and/or Delivery agent
    1. :95P:: BIC Code of DEAG/REAG
    2. :95Q:: Name of DEAG/REAG
  6. Buyer and/or Seller
    1. :95P::BIC Code of BUYR/SELL
    2. :95Q::Name of BUYR/SELL
  7. Total cash amount in ISK

Third party trade transaction flow


Trade settlement flow for NCSDI members

The central securities system for settlement in ISK is based on NCSDI reported trades to the Central banks of Iceland. Based on the net transfers that apply to each seller and buyer, the Central Bank of Iceland carries out the net cash settlement and NCSDI is responsible for the gross securities settlement.

Settlement cycle

Settlement through NCSDI TRS system is done in two settlement cycles carried out daily. Members can input their settlement instructions until 17:00 on S-1 at which time NCSDI sends information to the Central Bank and each member, about their payment obligations for S.


 Settlement flow



Trades can be allocated until 11:15 on S, after that transactions are locked for settlement that takes place at 11:45.  NCSDI cancels transactions with negative balances. Buyers must have sufficient cash to meet their obligations on their account at the Central bank on S at 11:00 and the Central Bank sends NCSDI a confirmation thereof.   Same applies to the second settlement cycles that takes place at 15:00. Securities must be allocated before 14:30 as the system closes for allocations.  If there are insufficient cash or securities on the accounts, settlement is postponed.

The settlement model used in Iceland is BIS model 2 which means gross settlement of securities transfers followed by net settlement of funds transfers


Corporate Actions

All corporate events in dematerialized securities are processed through NCSDI system. In Iceland the most common types of corporate actions are payments of dividends and interest, drawings, merger and stock splits.   


Cash Dividend

Icelandic companies pay dividends on an annual basis.  At Annual General Meeting (AGM) dividend payments and payment dates are decided. The dividend is paid out through NCSDI system based on holdings on the record date.  Issuers pay sum of the cash dividend to the NCSDI correspondent cash account which distributes it accordingly to custodians.



Interest payments are paid according to holdings on record date.  The payment is made directly from the issuer to account operators which distribute the payment accordingly to their customers.



Redemption is done by the NCSDI on maturity day.  The payment is made directly from the issuer to account operator and the account operator distributes the payment accordingly to his customers.
The House Bonds are redeemed 4 times a year.  This drawing procedure ensures that all investors get the respective part of their holdings drawn to a given due date.  NCSDI calculates the drawing from a percentage given by the issuer.


Merger and Stock Splits

Merger and stock splits are done by Nasdaq CSD Iceland on a pre-announced date after the market is closed.  All trades are halted the same day.



Nasdaq CSD Iceland (NCSDI) places emphasis on building a secure environment for its customers. The Depository system runs on IBM iSeries which is one of the most secure hardware offered in the market.  NCSDI has set up two such machines which run in parallel. Thus, all data are simultaneously stored on both of the iSeries computers. The computers are located at two different sites at the Banks’ Data center, which is the most advanced and secure data centers in Iceland. All communications within the system goes through the bank computer network. Backups are done daily and the tapes are stored at a secure location.