LuxCSD has gained a licence to act as a central securities depository (CSD) under the Central Securities Depository Regulation.
The key objectives of CSDR, which came into force in February 2021, are to increase the safety and efficiency of securities settlement and settlement infrastructures in the EU and to establish a level playing field among CSDs.
The licence was granted by the Luxembourg Commission de Surveillance du Secteur Financier (CSSF) and took effect yesterday.
By obtaining its CSDR licence, LuxCSD has been certified as adhering to common European standards, which contribute to market harmonisation and a level playing field.
Patrick Georg, CEO of LuxCSD, which is owned by the Central Bank of Luxembourg and Clearstream, Deutsche Boerse’s post-trading services provider, said: “Following Target2-Securities and the roll-out of our investor CSD model, the CSDR licence complements the strategy of LuxCSD.”
Georg noted that “ultimately, joint standards in post-trading should also help make cross-border settlement processing more efficient and in the longer term hopefully less costly for our customers”.
It is also said to support the further integration of European financial markets, particularly in regards to offering issuance services to issuers across Europe.
Georg added: “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.”
