CSDR Article 38 disclosure
Article 38(6) of the CSDR (Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories) provides for obligations for CSDs (as well as its participants) to publicly disclose the levels of protection and the costs associated with the different levels of segregation provided. Such details shall include a description of the main legal implications of the respective levels of segregation offered, including information on the insolvency law applicable in the relevant jurisdiction.
To comply with such requirements of Article 38(6) of the CSDR, LuxCSD S.A. (LuxCSD) refers to the “CSD Information Disclosure with regard to Article 38 CSDR” document, which is available below.
We note that the requirements of Article 38(5) and (6) of the CSDR are also applicable to LuxCSD clients. Accordingly, they shall be ready to offer their clients at least the choice between omnibus client segregation and individual client segregation and inform them of the costs and risks associated with each option (Article 38(5) of the CSDR). Further, LuxCSD clients shall also publicly disclose the levels of protection and the costs associated with the different levels of segregation that they provide and shall offer those services on reasonable commercial terms (pursuant to the requirements of Article 38(6) of the CSDR).