The main characteristics of LuxCSD's service scope can be summarised as follows:
Securities settlement DVP and FOP
LuxCSD provides securities settlement service in T2S with Euro Central Bank Money covering all Euro denominated securities issued through LuxCSD. In addition, this service covers securities made T2S-eligible by CBF as Issuer-CSD through cross-CSD settlement in T2S. Furthermore, LuxCSD offers Investor-CSD settlement services for a number of countries through its direct link with CBF.
LuxCSD supports the issuance, settlement, asset servicing and safekeeping of a wide range of securities.
LuxCSD acts as a centralised facility for the issuance and settlement of investment funds domiciled in Luxembourg or in other countries.
Investment funds services
LuxCSD provides settlement services, asset services, as well as issuance services for investment funds. The Central Facility for Funds (CFF) is LuxCSD’s post-trade infrastructure for investment funds. CFF provides standard settlement services (CFF Services) based on the synchronous exchange of cash and CFF Qualified Investment Fund Shares between the customers and CFF Settlement Agents within LuxCSD.
Standard custody services include the handling of:
- Income and redemptions;
- Corporate action events.
Comprehensive custody services are available to customers for securities accepted and held by LuxCSD. They include collection of coupon and dividend payments, collection of principal, exercise of rights and warrants as instructed by the customer, tax and proxy voting services.
Reporting and connectivity
Reporting and online connectivity in ISO 15022 will be available via:
- Clearstream Xact with the following choice of channels:
- Xact Web Portal;
- Xact File Transfer;
- Xact via SWIFT.
- Creation Online.
LEI issuance and maintenance
LuxCSD offers LEI creation and management services, which cover multiple jurisdictions.
National access point to TARGET2-Securities (T2S)
LuxCSD is playing a central role in preparing the local financial institutions to benefit from the opportunities provided by T2S and, simultaneously, in allowing Luxembourg's marketplace to remain competitive as a financial centre once the new European settlement infrastructure is implemented.
As part of its key strategy and initiatives, LuxCSD provides the Luxembourg financial market infrastructure with a national access point to T2S for Euro issuance and settlement in central bank money. This provides a strong foundation for offering customers a wide range of cross border services for securities and investment funds.