Wednesday July 17 2013
News Source: Global Exchanges
Focus: Short Selling
Type: General
Country: Luxembourg
Link: http://www.lseg.com/london-stock-exchange-group-expand-csd-services
London Stock Exchange Group (LSEG) announced on 16 July 2013 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 Groupβs 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.
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