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LSE Group establishes Lux CSD
17 July 2013
CSD slated to open in 2014
The London Stock Exchange Group has announced is to establish a
central securities depository (CSD) in Luxembourg.
The Luxembourg CSD will build on LSE's Italian CSD, Monte
Titoli, and provide a full range of custody and settlement
The CSD is slated to launch in the first half of 2014 and
already, JPMorgan has confirmed that it intends to use the
Group to provide settlement, custody and asset servicing
services for its international collateral management business.
Raffaele Jerusalmi, CEO of Borsa Italiana and director of
capital markets at the London Stock Exchange Group said: "The
Group is well placed to provide a full range of post trade
services to meet the evolving needs of our customers arising
from on-going financial regulatory change and the continued
focus on operational efficiency.
"We are also pleased to note that J.P. Morgan has announced its
intention to select LSEG as its provider of settlement, custody
and asset servicing as part of its international collateral
The Group said it selected Luxembourg as a result of customer
demand and the CSD would function on an open-access model,
which would allow clients to meet their regulatory obligations
under the European Market Infrastructure Regulation (Emir),
which requires central counterparties to hold collateral assets
posted as margin or as default fund contributions at a
securities settlement system, such as a CSD.