Luxembourg CSD Cuts Custody Fees for Equities

Luxembourg’s central securities depository will cut custody fees for equities by 50% from April 1.
By Janet Du Chenne(59204)
Luxembourg’s central securities depository will cut custody fees for equities by 50% from April 1.

The initiative will support the dematerialization of securities of all types, says LuxCSD, and results in an alignment of the equity and bond custody fees.

Luxembourg changed its law governing the dematerialisation of physical securities in April 2013 to further enhance the appeal of securities issued and dematerialised in Luxembourg.

In March 2014, LuxCSD handled the dematerialization of BIP Investment Partners’ Luxembourg equities with a volume of € 400 million.

Custody of equities in dematerialized form significantly reduces inefficiencies, risks and costs for the industry and increases the level of transparency regarding the chain of holders of a Luxembourg security, says LuxCSD.

Patrick Georg, general manager of LuxCSD, says: “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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