Issuance and distribution hub
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.
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.
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.
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 on existing LuxCSD issues are supported in commercial bank money (see L17102).
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 T2S eligible 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.
- This may be done via ICM TARGET-2 Workstation or by SWIFT MT202.
Via SWIFT MT202 the following formatting must be used:
Sender’s Transaction reference number = mandatory field
Sender’s related reference number = mandatory field
YYMMDD, EUR (Amount)
BIC of paying LPA’s RTGS account
- EUR custody proceeds from non-T2S eligible securities must be made to CBL's relevant cash correspondent. Full details are provided in the Cash Timings Matrix on the Clearstream website.
- USD custody proceeds from already accepted issues: 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 from already accepted issues: 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.
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)