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ECB approves LuxCSD
08 March 2013
LuxCSD becomes eligible for Eurosystem's monetary policy and credit operations after European Central Bank grants approval
LuxCSD has received approval from European Central Bank for its securities settlement system (SSS) to be eligible for use in Eurosystem credit operations.
ECB has conducted an assessment to prevent central banks from bearing risks when conducting monetary policy operations and to ensure the same level of safety for the operations of all central banks settled in different ways throughout the eurozone.
The approval paves the way for Luxembourg in aspiration to become an issuance and distribution hub in euro central bank money for national and supra-national issuers, LuxCSD commented on the approval.
“The ECB approval strengthens the Luxembourg financial place in its role as efficient issuance and distribution hub in Euro central bank money,” said Pierre Thissen, vice-chairman of the board of directors at LuxCSD and head of market infrastructure and payment systems at Luxembourg’s central bank.
According to general manager of LuxCSD, Patrick Georg “this approval is the launch signal for highly rated issuers with whom we have been in discussion over the past months and year”.
“As a result we are expecting the imminent issuance of high value securities through LuxCSD to a large group of national and international investors,” he added.
The depository expects first major bond issuance through LuxCSD in the course of Q1 2013.