LuxCSD, Luxembourg’s central securities depository, has now designated five banks as its LPAs – Banque et Caisse d’Epargne de l’Etat, Banque Internationale à Luxembourg, BNP Paribas Securities Services, Caceis Bank and Citi – to support the issuance process of domestic and international securities.
Issuers of securities inside and outside of Luxembourg can select and appoint one of the LPAs to ensure compliance with LuxCSD’s operations throughout the lifetime of the issuance.
Issuers will gain the advantage of distributing their securities in central bank money while benefitting from the extensive customer network of LuxCSD shareholder Clearstream which gives access to 2,500 financial entities worldwide. Settlement of securities issued in LuxCSD is either performed in EUR central bank money or other currencies in commercial bank money via cash accounts in Clearstream.
Pierre Thissen, member of the board of directors of LuxCSD and head of market infrastructure of the Banque centrale du Luxembourg, says: “We are pleased that five main players of the Luxembourg financial centre and beyond have agreed to provide access to LuxCSD’s distribution hub for issuances. Issuers benefit from the single point of access to a broad range of counterparties globally while issuing in central bank money and can also take advantage of Clearstream’s counterparty reach and a consolidated liquidity pool.”
LuxCSD provides the Luxembourg financial community with EUR central bank money settlement services as well as issuance and custody services for a wide range of domestic and international securities including investment funds. The CSD fully supports dematerialised securities as these will significantly reduce inefficiencies, risks and costs for the industry. LuxCSD can also advise issuers in dematerialising existing physical securities.