The Securities accounting system
Lithuania has a two level securities accounting system typical of big countries.
Its implementation was influenced by the pace and volumes of privatization in the period from 1991 through 1993, during which 70% of state owned companies were privatized and about 1 m minority shareholders came into existence.
The two-level system means that only general (omnibus) accounts of intermediaries of public trading - securities account managers are opened in the Central Depository level, while the title to securities is rooted in personal securities accounts managed by securities account managers.
The Central Depository and all securities account managers must comply with the following securities accounting principles:
- The double entry principle
- The principle of obligatory registration of all operations
- The principle of separate accounting for each securities issue
- The principle of segregation of accounting
- The principle of transparency
Details on these principles can be found in the Accounting Rules for Financial Instruments and Their Circulation.
The Central Depository has the right to set the Parameters of securities accounts, which depend on the level of securities accounting system.
| Level of CSDL (1st level) | Level of Participant (2nd level) |
- ISIN code of securities;
- CD (SSS) participant code;
- Code of type of activity;
- Code of nature of account.
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- ISIN code of securities;
- CD (SSS) participant code;
- Code of type of activity;
- Code of nature of account.
- Number of account;
- Client identification number.
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In the level of the Central Depository, an account consists of a four-component combination, and if one component changes, it gives rise to a new account. In the level of account manager, there are two additional components - the number of personal account and client identification number.
Here you can find all Parameters of CSDL database.
The Central Depository sets Minimum chart of securities accounts with codification of such accounts, as well as the correspondence of securities accounts and a detailed procedure for the opening and operation of securities accounts (refer to Securities accounting instruction).
The Central Depository has drafted Recommended chart of cash accounts for securities accounts managers to be used for cash operations related to securities.
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