Verðbréfamiðstöð Íslands (VBM)
Verðbréfamiðstöð Íslands (VBM) provides service for issue of securities, top tier level of central safekeeping service and clearing and settlement service.
VBM operates a centralized registration of electronic securities for issuers in the Icelandic market.
VBM is licenced under the European Central Securities Depository Regulations (CSDR) and regulated by the Icelandic Financial Authority.
VBM is owned by Innviðir - infrastructure fund and a broad group of Icelandic pension funds, banking institutions and professional investors
Cost-effective and efficient services
The strategy of VBM is to run operations as cost-effectively and efficiently as possible to benefit our customers with low prices and solid services.
VBM serves issuers and investors with electronic asset registration of securities, shares, bonds, bills and unit certificates, whether listed on a stock exchange or not.
The benefit of electronic registration of securities in a CSD lies in the legal confirmation of ownership and rights. Registering securities simplifies the work of managers and investors, with a full overview of their assets and transactions in online banking, as well as providing the year-end balance that can be transmitted to the local tax authorities.
Registration of securities, e.g. of shares, bonds and bills increases security for investors and professionalism around investments. Settlement of securities transactions is a formal, simple and secure process. In VBM's system, the shareholder register is constantly updated according to the latest transactions and all corporate events can be performed, e.g. paying out dividends, reducing and increasing share capital, share exchange, and much more.
Growth outside of Iceland
One side of VBM business is to serve clients seeking better management, professionalism, and security for investors in bonds and shares that were previously unregistered.
Leveraging on pan-European license, VBM is engaging with financial institution in Europe. This provides a unique platform to increase revenues substantially with little comparable investments on the business side.
VBM sees growth outside of Iceland as an exciting opportunity in the next 5 years, partnering up with strong financial institutions for each market in Nordics and Europe.
Overview of VBM's setup and infrastructure
- VBM is connected to the RTGS system of the Central Bank of Iceland and has as a well direct connection with the three major banks in Iceland.
- The assets and financial data are stored and processed in Iceland, with RB the financial infrastructure company of the Icelandic banking system that provides the hosting services to VBM.
- VBM operates a locally run version of the Quick Clear system provided by INFRAX that is used for the same purposes in other European countries.
- The number of employees at VBM is six, two women and four men. The average full-time value is 4.6.
The Association of Global Custodians Questionnaire 2023-2024
Every year VBM submits 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.