sys de paiement

Domestic Securities Settlement Systems

Securities Settlement Systems (SSS) enable the transfer of securities, for instance, following trading on a stock-exchange or over the counter. There are two legs for the settlement of such a trade: the delivery of the securities and the corresponding payment which takes places in a payment system - unless the delivery is free of payment. The delivery of securities takes place by book entries in computerised systems. Both legs must be executed simultaneously and be linked to limit risks. Moreover, transactions settled in SSSs are considered final and irrevocable (i.e. unconditional) when they meet certain conditions.

SSSs either make settlements on a gross basis (i.e. transactions are settled individually) or on a net basis (transactions are netted before a single settlement).

Securities are held with central securities depositories (CSD), which are notably responsible for ensuring securities’ integrity. Next to the safekeeping function, CSDs enable securities’ mobility as they operate securities settlement engines.

There is usually at least one CSD and one SSS in each EU country. In Luxembourg,  Clearstream Banking S.A. is the national CSD for the collateral required from counterparties for the credit facilities granted by the central bank. Since 2009, the BCL, in addition, accepts collateral in VP Lux. The BCL designated the domestic central securities depository LuxCSD as SSS in October 2011 and accepts in it collateral deposited by counterparties since 2013. LuxCSD and VP Lux will be participants in the pan-European system Target2-Securities.


Clearstream Luxembourg

Clearstream Banking S.A, Luxembourg (Clearstream) is a central securities depository operating a securities settlement system in commercial bank money connected to TARGET2. It was designated to be the securities settlement system by the Banque centrale du Luxembourg.


In relation to the development of Target2Securities (T2S), a Central Securities Depository (CSD), providing settlement services in central bank money, had to be created in Luxembourg. LuxCSD, the new central securities depository in Luxembourg, aims to provide local access to the T2S infrastructure.

The LuxCSD S.A. Company was incorporated in July 2010, jointly by the BCL and Clearstream International in an equal partnership. Clearstream will be the operator of LuxCSD in the future.

The Banque centrale du Luxembourg designated it to be the securities settlement system.

LuxCSD became operational in October 2011 and will settle in central bank money using TARGET2.

VP Lux

VP LUX S.à r.l. (VP LUX) is a central securities depository operating in Luxembourg since 2009. It operates a securities settlement system with settlements processed in TARGET2. The Banque centrale du Luxembourg has designated the securities settlement system.

VP LUX is a fully owned subsidiary of Værdipapircentralen A/S, Denmark: VP Securities Service.