Direct holding system

A holding system for securities in which the beneficial owner of securities (i) is reflected as the legal owner on the issuer's official register(s) (and, if the securities are required to be certificated, the securities are issued in the name of the owner) or (ii) is in possession of securities issued to bearer. The issuer, CSD, participants in the CSD, and third-party claimants are required to recognise the owner's rights and interests in the securities based on the record of the register or the owner's possession of the security.