Citi has been named as the fifth bank to partner with LuxCSD, Luxembourg’s central securities depository, as a principal agent.
LuxCSD has now appointed five banks as principal agents including, Banquet et Caisse d’Epargne de l’Etat, Banque Internationale à Luxembourg, BNP Paribas Securities Services, Caceis Bank and Citi.
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 also gain the advantage of distributing their securities in central bank money while benifitting from the extensive customer network of LuxCSD shareholder, Clearstream.
Pierre Thissen, member of the board of directors of LuxCSD and head of market infrastructure of the Banque centrale du Luxembourg, welcomed the appointments saying that LuxCSD would now become a hub for issuing securities in EUR central bank money and would cover all types of instruments including dematerialised securities.
“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.”
Patrick Georg, general manager of LuxCSD, said the appointment of five principal agents and the recent European Central Bank approval to use LuxCSD in Eurosystem monetary policy operations were important milestones for the institution enabling it to be fully equipped to handle issuer and investor CSD activity in Luxembourg and internationally.
“I am particularly satisfied that such prestigious actors of the financial market have added LuxCSD based issuance to their capabilities thereby enhancing their offering for issuers. This is clearly a sustainable solution that guarantees the availability of such securities in the future environment with TARGET2-Securities.”
