London Stock Exchange Group to expand CSD services
- LSEG to establish CSD in Luxembourg
- Builds on the infrastructure, knowledge and expertise of Monte Titoli, LSEG’s existing CSD
- New CSD expected to be operational in H1 2014, subject to regulatory approval
London Stock Exchange Group (LSEG or ‘The Group’) today announces that it is in the process of establishing a new Central Securities Depository (CSD) in Luxembourg. The CSD will provide a full range of custody and settlement services and will build on the existing infrastructure of the Group’s Italian CSD, Monte Titoli. Luxembourg was selected as the location for this new service as a result of customer demand and will, accordingly, allow the Group to broaden its customer base as it expands its custody and settlement services.
The new CSD will operate an open-access model and will help enable customers to meet changing regulatory obligations, such as the European Market Infrastructure Regulation (EMIR). Under EMIR, central counterparties (CCPs) are required to hold collateral assets posted as margin or as default fund contributions at a securities settlement system, such as a CSD, where possible. LSEG is also pleased to note the announcement from J.P. Morgan confirming its intention to use the Group as its provider of settlement, custody and asset servicing services for its international collateral management business.
Raffaele Jerusalmi, CEO of Borsa Italiana and Director of Capital Markets, London Stock Exchange Group said: “We are delighted to confirm our plans to establish a new CSD which will provide a broad range of custody and settlement services. The Group is well placed to provide a full range of post trade services to meet the evolving needs of our customers arising from on-going financial regulatory change and the continued focus on operational efficiency.
“We are also pleased to note that J.P. Morgan has announced its intention to select LSEG as its provider of settlement, custody and asset servicing as part of its international collateral management business.”
Monte Titoli, the third largest CSD in Europe, will drive the growth of the Group’s international custody and settlement business and will provide technology, operational services and access to T2S for the new CSD. Subject to regulatory approvals, the new CSD is expected to launch in the first half of 2014.
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For further information please contact:
Lucie Holloway +44 (0)20 7797 1222
Paul Froud +44 (0)20 7797 3322
Notes to Editors:
About London Stock Exchange Group:
London Stock Exchange Group (LSE.L) is a diversified international exchange Group that sits at the heart of the world's financial community. The Group can trace its history back to 1801.
The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and the Pan-European equities and derivatives platform, Turquoise. Through its markets, the Group offers international business, and investors, unrivalled access to Europe's capital markets.
Post trade and risk management services are a significant and growing part of the Group’s business operations. LSEG operates CC&G, the Rome headquartered CCP and Monte Titoli, the significant European settlement business, selected as a first wave T2S participant. The Group is also a majority owner of leading multi-asset global CCP, LCH.Clearnet.
The Group offers its customers an extensive range of real-time and reference data products, including Sedol, Unavista, Proquote and RNS, as well as access to over 200,000 international equity, bond and alternative asset class indices, through LSEG’s world leading index provider, FTSE.
London Stock Exchange Group is also a leading developer of high performance trading platforms and capital markets software. In addition to the Group’s own markets, over 30 other organisations and exchanges around the world use the Group’s MillenniumIT trading, surveillance and post trade technology.
Headquartered in London, United Kingdom with significant operations in Italy, France, North America and Sri Lanka, the Group employs approximately 2,800 people.
Further information on London Stock Exchange Group can be found at: www.lseg.com