LuxCSD, the Luxembourg central securities depository (CSD), has obtained its CSDR licence, it announced this week.
According to LuxCSD, the licence was granted pursuant to Art. 16 CSDR (core services) by the Luxembourg Commission de Surveillance du Secteur Financier (CSSF). The authorisation is effective as of 15 April 2020.
LuxCSD says that the key objectives of the Central Securities Depositories Regulation (CSDR) are to increase the safety and efficiency of securities settlement and settlement infrastructures in the European Union and to establish an enhanced level playing field among CSDs.
For CSDs, it seeks to create a harmonised set of rules for authorisation, operation and governance, as well as for the provision of services. In this context, CSDR requires all CSDs to apply for re-authorisation to receive a CSDR licence, according to LuxCSD.
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“We are delighted that, coinciding with our tenth anniversary, we have reached a new milestone: LuxCSD has been authorised as CSD under CSDR. Having received the licence, we will be able to support our customers in Luxembourg and beyond with a safe, stable and fully compliant environment for their business aligned with European standards,” Patrick Georg, CEO of LuxCSD, commented.
LuxCSD is jointly owned by the Central Bank of Luxembourg (Banque centrale du Luxembourg) and Clearstream, Deutsche Börse Group’s post-trading services provider.
As central securities depository (CSD), it serves as a national access point to TARGET2-Securities (T2S), allowing seamless interoperability across T2S markets.
LuxCSD provides custodians and distributors across Europe with issuance, central bank money (CeBM) settlement and asset servicing for debt, money market and equity instruments, as well as investment funds.
LuxCSD also provides Legal Entity Identifier (LEI) services in 37 jurisdictions around the world as a Local Operating Unit (LOU) accredited by the Global Legal Entity Identifier Foundation (GLEIF).