Verðbréfamiðstöð Íslands (VBM)

Verðbréfamiðstöð Íslands (VBM) is a central securities depository, regulated by the Icelandic Financial Authorities, and provides an efficient infrastructure for the post-trade processing in Iceland.

VBM is licenced under the European Central Securities Depository Regulations (CSDR). The goal of the Central Securities Depositories Regulation (CSDR) is to make markets more stable, transparent, and efficient by regulating securities settlement and settlement infrastructures in a harmonised manner across the European Union and the European Economic Area (EEA).

Overview of VBM's setup and infrastructure

  • VBM is connected to the central processing system of the Icelandic Central Bank and has as well direct connection with the three major banks in Iceland.
  • The assets and related data are stored and processed in Iceland, RB the financial infrastructure company of the Icelandic banking system provides the hosting services to VBM.
  • VBM operates a locally run version of Quick Clear system provided by INFRAX that is used for the same purposes in Slovenia and few other European countries.

VBM is owned by Innvidir - infrastructure fund and a broad group of Icelandic pension funds, banking institutions and professional investors.

The Association of Global Custodians Questionnaire 2023-2024

Every year VBM submitts the Questioner for the Association of Global Custodians' Depository Information-Gathering Project. The Association of Global Custodians is a group of 12 financial institutions that provide securities safekeeping services and asset-servicing functions to primarily institutional cross-border investors worldwide. Get the AGC questionnaire

 The service

Registration of Securities

  • Securities issues in book-entry form in Icelandic krona and other currencies.
  • The financial instruments eligible are equities, debt instruments, funds, rights, warrants and options shares, bonds, bills, and unit certificates of funds.

Property registration, confirmation of ownership and rights.

Settlement Services

  • Settlement of Stock Exchange Trades.
  • Settlement of OTC Trades, both DVP and FOP.
  • VBM settlement cycles are at 10:00, 13:30 and 15:30.

Processing of Corporate Action

  • Dividends
  • Interest and coupon payments
  • Stock split
  • Other corporate actions in accordance with the issuer's request.