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What happens when a private CSD goes bankrupt? (Many are owned by a state but e.g. Clearstream and CHIPS aren't)

I assume that most stocks are only electronically so how can those securely transmitted to another CSD? Assuming that not all stock markets are connected to multiple CSDs wouldn't that make some (or all?) stock exchange unusable?

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There is no generic answer and it would depend on case to case basis.

CSD are built on strong foundation in the sense they would have very low cost base and generally would not go bankrupt.

However if such a situation as CSD provide an essential role, the regulator, central bank and Government would all step in to prevent a total collapse.

They would be forced merged with other entity or more capital raised or put under watch by Govt appointed trustee to settle issues so that there is least or No impact.

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