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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