CTS TRADE IT Introduces ISB Broker – A Unique Solution for Third-Party ISB Reporting at Central Securities Depository Prague

CTS TRADE IT is launching a new product, ISB Broker, which enables compliance with mandatory ISB reporting for customer accounts at CSD.CZ not only on behalf of the depository member itself, but also on behalf of its clients – typically other brokers or external entities.

ISB reporting, i.e., reporting of ultimate beneficial owners’ positions and transactions, is a mandatory component of maintaining client accounts at CSD.CZ. These accounts aggregate the positions of multiple ultimate beneficial owners, and the responsibility for the accuracy and completeness of the reporting lies with the CSD.CZ participant. With the growing use of outsourcing and multi-level records, this obligation is becoming increasingly complex.

ISB Broker addresses this need. It enables centralized ISB reporting not only for the CSD.CZ member’s own positions but also for external client records, with data sources including both internal systems and data provided by third parties. The product thus significantly simplifies compliance with regulatory requirements set by the CSD.CZ and the CNB.

“ISB Broker was created in response to real market needs. Our clients are increasingly facing situations where they must fulfill ISB reporting obligations even for entities that are not direct depository participants themselves. The goal was to offer a solution that is technically robust, compliant with regulations, and practical to use,” says Tomáš Gavlas, CEO of CTS TRADE IT.

Key Benefits of ISB Broker

• Automated ISB reporting fully compatible with the ISB/CSD.CZ interface, including support for ex-post data import from external systems.
• Support for multiple entities in a single environment thanks to a multitenant architecture.
• Centralized data management and control, including the ability to make manual adjustments without service downtime when integrated with the CTS platform.

Modern architecture and flexible deployment

ISB Broker is designed as a cloud-native microservice that can be operated independently (e.g., with data import via files) or as part of the CTS platform, which provides a user interface and additional integration options. The solution can be deployed both on-premises and in cloud environments (AWS, Azure, OpenShift) and uses a separate database schema for maximum performance and security.