This report has analysed the effect that a Centralised Securities Depository (CSD) for equities will have on the securities industry in the emerging countries of the Far East. The first part of this report dealt with the securities industry and its environment and identified the most important factors influencing the industry. In addition, the experiences of custodian banks in selected Far Eastern countries were ascertained in relation to the establishment of CSDs in these countries. From this base, using available data and assisted by various experts, the most likely trends have been used to predict the effect that a CSD for equities will have on the securities industry in South Africa.