LuxCSD Adds Citi as a Principal Agent

Luxembourg’s central securities depository (LuxCSD) has added Citi as a principal agent (LPA) to support the issuance process of domestic and international securities through LuxCSD.

Citi joins Banque et Caisse d’Epargne de l’Etat, Banque Internationale à Luxembourg, BNP Paribas Securities Services and Caceis Bank as among the paying agents.

Issuers of securities inside and outside of Luxembourg can now select and appoint one of the LPAs to ensure compliance with LuxCSD’s operations. Settlement of securities issued in LuxCSD is either performed in euros or other currencies in commercial bank money via cash accounts in Clearstream.

LuxCSD would now become a hub for issuing securities in euros and would cover all types of instruments including dematerialized securities, said Pierre Thissen, member of the Board of Directors of LuxCSD and head of Market Infrastructure of the Banque centrale du Luxembourg.

“Issuers benefit from the single point of access to a broad range of counterparties globally while issuing in central bank money and can also take advantage of Clearstream’s counterparty reach and a consolidated liquidity pool,” said Thissen.

Separately, a 10-year Luxembourg government bond is to be issued through LuxCSD. This is the second government bond to be issued through the securities settlement system.