Dematerialisation involves dispensing of paper instruments and certificates altogether. Dematerialised securities exist only in the form of electronic records. The legal impact of dematerialisation differs in relation to bearer and registered securities respectively.

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Direct and indirect holding systems

In a direct holding system, participants hold the underlying securities directly. The settlement system does not stand in the chain of ownership, but merely serves as a conduit for communications of participants to issuers.

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See also

• Herstatt Risk/Settlement risk
• Continuous linked settlement

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External links

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