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 settle 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 (CSDs), which are notably responsible for ensuring securities’ integrity. Next to the safekeeping function, CSDs enable securities’ mobility as they operate securities settlement systems.

There is usually at least one CSD and one SSS in each EU country. In Luxembourg, Clearstream Banking S.A. and LuxCSD are the CSDs for settlement and safekeeping of the collateral required from counterparties for the credit facilities granted by the central bank. LuxCSD participates in the pan-European platform Target2-Securities.

Clearstream Luxembourg

Clearstream Banking S.A, Luxembourg (Clearstream) is a central securities depository operating a securities settlement system in commercial bank money.


In relation to the development of Target2Securities (T2S), a Central Securities Depository (CSD), providing settlement services in central bank money, was created in Luxembourg. LuxCSD, the new central securities depository in Luxembourg, provides 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.