VP maintains its competitiveness as the lowest-priced central securities depository in Europe with the presence in Eurosystem.
According to governing council of the ECB – VP Lux S.a r.l. are compliant with the Eurosystem standards for securities settlement systems. Thus securities issued via VP Lux can be used for collateralisation of credit operations within the Eurosystem.
VP Lux is authorized as a Central Securities Depository in Luxembourg and is a fully owned subsidiary of VP Securities Services in Denmark.
Through VP Lux, VP is now able to offer Danish banks and mortgage institutions the option of issuing euro bonds from a country within the euro zone. This means that it will soon be possible to collateralize the bonds in a central bank of a euro zone country when the need for obtaining euro liquidity arises. This is not the case if the euro bonds are issued via Denmark.
By setting up a Central Securities Depository in Luxembourg, VP will make it less costly for Danish banks and mortgage institutions and thus the borrowers to finance operations in euros.
L.D.