Clearstream has announced that its joint venture, LuxCSD, with Luxembourg’s central bank is fully operational and will serve as the access point to TARGET2-Securities (T2S).
LuxCSD provides the Luxembourg financial community with central bank money settlement prices as well as issuance and custody services for a wide range of securities, including investment funds.
Patrick Georg, general manager of LuxCSD, says, “After several years of intense work with and for the Luxembourg market, we have now reached a major milestone with the go-live of LuxCSD. Given the scope and quality of its services, I am confident that LuxCSD will provide its customers in Luxembourg and throughout Europe an access which is second to none to the eurozone markets and in the future to TARGET2-Securities.”
LuxCSD will also provide reporting and connectivity through ISO 15022 and DTCC’s latest message standard, ISO 20022, as well as asset servicing like the handling of exchanges, income and redemptions and corporate action events while more comprehensive custody services are available to customers for securities accepted and held by LuxCSD.
Pierre Thissen, head of market infrastructure of the Banque centrale du Luxembourg, says, “Delivery versus payment (DVP) settlement in central bank money is widely recognised as the safest way to achieve securities settlement. LuxCSD will therefore contribute to lowering settlement risk. The Luxembourg financial center is, historically and because of its place at the heart of Europe, very much cross-border oriented. While domestically rooted in Luxembourg, LuxCSD will be oriented towards the entire eurozone and beyond and will naturally link to T2S when it is implemented.”
Thissen is also a member on the board of directors of LuxCSD.
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