LuxCSD – your local access to T2S
We see T2S in the context of a wider change process taking place in the financial industry. The T2S migration waves are taking place against a rapidly changing regulatory backdrop that in Europe involves the implementation of new Basel III minimum ratios, EMIR mandatory clearing, and a tightening of rules under the aegis of AIFMD and UCITS V.
Within this context T2S is triggering change on two levels. Firstly there are mandatory changes – changes necessary to comply with new market practice and regulation. Alongside this there is the opportunity in particular for customers to reengineer and redefine their cash and securities networks to optimise their business in this new operating paradigm.
LuxCSD is to provide internationally active market actors with a Luxembourg based access point to T2S, providing the full range of T2S functionalities. It will distinguish itself by providing exceptionally flexible services for both a domestic and international community, particularly in the fields of securities issuance and investment funds services.
Central bank money issuance
As a robust and reliable institution that is jointly owned by the Banque Centrale du Luxembourg, customers can benefit from a uniquely close relationship with an important central bank that they can trust when undertaking their issuance activity.
LuxCSD’s issuer CSD status for T2S provides customers with the safety of central bank money issuance into the new settlement platform. Complementing this, through its issuance and distribution hub, LuxCSD offers flexible solutions with regards to the conditions and particulars of new issues, giving customers high levels of choice with regard to eligible jurisdictions, currencies and dematerialisation status of securities.
LuxCSD provides customers with a Luxembourg based access point to T2S and at the same time provide access to a total of 54 domestic markets via the direct link to Clearstream’s ICSD. This is offered in a manner that requires only limited adaptation on the part of the customer.
LuxCSD: T2S access point for Luxembourg domiciled funds
Luxembourg is a leading centre for the issuance and distribution of investment funds with more than EUR 3.4 trillion of assets under custody. LuxCSD is to serve as a T2S access point for investment fund settlement in CeBM in the same way as it does for other asset classes. It will deliver routing services for fund orders and functions as a centralised facility for the issuance, settlement and custody of investment funds.
LuxCSD’s access will allow funds to benefit from central bank money settlement of their shares as well as of underlying assets throughout T2S, as well as the potential to leverage a commercial bank money environment for settlement in 54 domestic markets worldwide.
LuxCSD additionally offers a wide range of value added services for funds, such as tailored transparency reporting.
Customers will also benefit from a next generation standard connectivity interface, Xact, which will show all of their business across all LuxCSD and Clearstream entities.
Connectivity: Xact Web Portal
Xact serves as a single point of access to all our markets and asset types, thereby offering multiple opportunities for asset consolidation. A more detailed description is available in the attachment below.