sys de paiement

Securities Settlement Systems (SSS)

Securities Settlement Systems 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.