Sub-custody guide: Luxembourg

Sub-custody guide: Luxembourg

In March 2014, LuxCSD announced a 50% reduction in the custody fees for equities, effective from April 1 2014, to align them with bond custody fees. The objective of the move was to encourage corporations to dematerialise existing physical securities and issue securities in dematerialised form. Custody of equities in dematerialised form significantly reduces inefficiencies, risks and costs for the industry and increases the level of transparency regarding the chain of holders of a security.

Also in March 2014, LuxCSD successfully handled its first dematerialisation of physical shares – the BIP Investment Partners Luxembourg equities with a volume of ¤400m ($456m). In April 2014 the Central Bank of Luxembourg allocated LuxCSD a key role in the establishment of the new global legal entity identifier (LEI) system by extending its role from a CSD to a pre-local operating unit for Luxembourg.

LuxCSD agreed a strategic collaboration with DTCC to provide the infrastructure for the LuxCSD LEI services to all Luxembourg- based entities. 

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