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- LSEG to establish CSD in Luxembourg
- Builds on the infrastructure, knowledge and expertise of Monte Titoli, LSEG’s existing CSD
- New CSD expected to be operational in H1 2014, subject to regulatory approval
London Stock Exchange Group (LSEG or ‘The Group’) today announces that it is in the process of establishing a new Central Securities Depository (CSD) in Luxembourg. The CSD will provide a full range of custody and settlement services and will build on the existing infrastructure of the Group’s Italian CSD, Monte Titoli. Luxembourg was selected as the location for this new service as a result of customer demand and will, accordingly, allow the Group to broaden its customer base as it expands its custody and settlement services.
The new CSD will operate an open-access model and will help enable customers to meet changing regulatory obligations, such as the European Market Infrastructure Regulation (EMIR). Under EMIR, central counterparties (CCPs) are required to hold collateral assets posted as margin or as default fund contributions at a securities settlement system, such as a CSD, where possible. LSEG is also pleased to note the announcement from J.P. Morgan confirming its intention to use the Group as its provider of settlement, custody and asset servicing services for its international collateral management business.
Raffaele Jerusalmi, CEO of Borsa Italiana and Director of Capital Markets, London Stock Exchange Group said: “We are delighted to confirm our plans to establish a new CSD which will provide a broad range of custody and settlement services. The Group is well placed to provide a full range of post trade services to meet the evolving needs of our customers arising from on-going financial regulatory change and the continued focus on operational efficiency.
“We are also pleased to note that J.P. Morgan has announced its intention to select LSEG as its provider of settlement, custody and asset servicing as part of its international collateral management business.”
Monte Titoli, the third largest CSD in Europe, will drive the growth of the Group’s international custody and settlement business and will provide technology, operational services and access to T2S for the new CSD. Subject to regulatory approvals, the new CSD is expected to launch in the first half of 2014.
