Clearstream’s Luxembourg CSD gains CSDR licence

Clearstream follows up on German CSD licence from January with Luxembourg approval.

By Jonathan Watkins

The Luxembourg central securities depository (CSD) jointly owned by the Central Bank of Luxembourg and Clearstream has obtained its CSDR licence.  

European central securities depositories (CSDs) are required to apply for a license under the new regulation, which sets out a host of performance and operational criteria they must fulfil, such as enhanced capital and transparency requirements.  

The rules also establish standards to increase securities settlement efficiencies, harmonise the settlement cycle, and introduces a penalty regime for failed trades. 

Thlicencewas granted by the Luxembourg Commission de Surveillance du Secteur Financier (CSSF) and was effective as of 15 April. 

“We are delighted that, coinciding with our tenth anniversary, we have reached a new milestone: LuxCSD has been authorised as CSD under CSDR,” said Patrick Georg, CEO of LuxCSD. 

Having received the licence, we will be able to support our customers in Luxembourg and beyond with a safe, stable and fully compliant environment for their business aligned with European standards.” 

The news comes three months after Clearstream obtained a licence for its Frankurt-based CSD. 

The key objectives of the CSDR are to increase the safety and efficiency of securities settlement and settlement infrastructures in the European Union and to establish an enhanced level playing field among CSDs. 

For the CSDs themselves, it seeks to create a harmonised set of rules for authorisation, operation and governance, as well as for the provision of services. 

In March, Polish market infrastructure group, KDPW, gained a licence, while Euroclear has now been granted six licenses for its various CSDs in Belgium, Finland, France, the Netherlands and Sweden, along with its international central securities depository (ICSD).