Issuance and distribution hub

04.09.2017

Issuance and primary market distribution is either free of payment or versus payment. Qualifying securities in bearer, registered or dematerialised forms, covering a wide range of instruments, e.g. debt, equities, and structured products may be immobilised in LuxCSD enabling settlement in book entry form.

Operational Arrangements

The LuxCSD Operational Arrangements provides Issuers and their appointed Agents with LuxCSD contractual and operational requirements for an issue to become and remain eligible for LuxCSD services.

Eligible Jurisdictions

LuxCSD qualifying securities may require a legal opinion where both the governing law of the security and the country of incorporation of the issuer is not Luxembourg.

Eligible Currencies

LuxCSD securities may be denominated in a range of currencies. The complete list of denomination currencies can be found on the Clearstream website. EUR issuance is supported by DvP in central bank money while other currencies are supported in commercial bank money.

The following payment details apply to the issuers' or their agent's payment of custody proceeds on LuxCSD-issued securities to LuxCSD:

  • EUR custody proceeds paid on securities issued through LuxCSD: all such payments must be made exclusively via TARGET2 to LuxCSD’s “Dedicated Cash Account” (“DCA”) in T2S account with the Banque centrale du Luxembourg – LuxCSD DCA details are CLUEURLUXCLULLXXX01.
    Paying EUR to the LuxCSD DCA must be done by payment transfer from your RTGS account to LuxCSD’s DCA.
  • This may be done via ICM Target2 Workstation or by SWIFT MT202.
    Via SWIFT MT202 the following formatting must be used:

Receiver

TRGTXEPMT2S                            

Header

field 103:TGT 
field 113: HNNN

Text Block

:20:

Sender’s Transaction reference number = mandatory field

:21:

Sender’s related reference number = mandatory field

:32A:

YYMMDD, EUR (Amount)

:52A:

BIC of paying LPA’s RTGS account

:58A:

/CLUEURLUXCLULLXXX01
LUXCLULLXXX

  • USD custody proceeds: All such payments must be made exclusively to CBL's account with JPMorgan Chase Bank, New York - BIC code CHASUS33XXX, account 001-1-573714.
  • Custody proceeds paid in other currencies: All such payments must be made to CBL's relevant cash correspondent. Full details are provided in the Cash Timings Matrix on the Clearstream website.

Security Issuance Checklists

LuxCSD provides tailored versions of the checklists established under the ISMAG initiative - for issuance under programme and standalone - to assist in evaluating the completeness of security information thereby allowing for more timely and accurate servicing of the security.

Issuance Effectuation Templates for Bearer and Registered form

The effectuation and disposal authorisations must be signed by issuers when the Global Note is delivered electronically to the LuxCSD vaults operator, in order to permit effectuation of the Global Note thereby creating a valid issue.

  • Issuer effectuation and disposal authorisation for a programme
  • Issuer effectuation and disposal authorisation for stand-alone securities
  • Issuer effectuation template

Cancellation for Dematerialised form

The effectuation and disposal authorisations do not apply for dematerialised securities because no Global Note is issued or delivered. However, a cancellation message via SWIFT is sent by the Issuer's Agent when the security is due for cancellation and removal from LuxCSD's issuance account. Please refer to the LuxCSD SWIFT guide.

Communication Guides

To provide timely and accurate processing of securities LuxCSD requires the use of standardised communications following the ISO/SMPG standards as defined in the LuxCSD SWIFT guides for Agents.

The guides are divided into three parts:

  • Part 1 - Settlement and Reconciliation messages (MT53x MT54x MT599)
  • Part 2 - Corporate Action messages (MT56x)
  • Part 3 - New Issue messages (MT599)