LuxCSD to cut custody fees for equities
The aim of the fee reduction is to encourage corporations to dematerialise existing physical securities and to newly issue securities in dematerialised form. Custody of equities in dematerialised form significantly reduces inefficiencies, risks and costs for the industry and increase the level of transparency regarding the chain of holders of a Luxembourg security.
In March 2014, LuxCSD successfully handled its first dematerialisation of physical shares - the BIP Investment Partners Luxembourg equities with a volume of €400m ($550.4m).
Patrick Georg, general manager LuxCSD said, “By cutting the custody fees for equities by 50% we aim to attract more corporates to dematerialise physical shares and to follow the example of BIP Investment Partners. We strongly support dematerialisation as best practice in securities custody and issuance.”
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