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As the transactions in shares increase, the ability to settle these transactions
through the physical delivery of certificates becomes more cumbersome
and error prone. The JCSD allows participating entities such as brokers
and institutional investors to place their securities on deposit at the
JCSD.
The JCSD registers the stock in its nominee name, in this case, the JCSD
Ltd. The JCSD maintains the certificates physically in its vaults, records
securities movements, and will debit or credit a participating firm's
position through a book-entry computerized system. The JCSD will shorten
the settlement cycle.
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