The role of Securities Services is to support institutional clients in matters relating to their securities portfolio. It can be defined as a custodian bank for the securities of large corporations, insurance companies, investment fund managers and pension funds, and even other banks.
Three main areas can be distinguished:
- clearing and settlement: This is the exchange of information between the two parties to a securities transaction and the final settlement of the securities
- custody of securities: this involves not only the custody of securities on behalf of third parties but also the management of their life (payment of dividends, allocation of free shares, division of nominal value, etc.); this is known as securities transactions or STOs. Securities services also handle tax claims in the case of cross-border securities.
- services to issuers of securities: This includes, for example, the management of general meetings of shareholders or the distribution of dividends or coupons among the holders of securities of issuing entities.