BNY Mellon, a global leader in investment management and investment services, has confirmed that its Brussels-based central securities depository, BNY Mellon CSD SA/NV, has been accepted as a recognised system for settling transactions in securities listed on the two markets operated by the Luxembourg Stock Exchange.
Chris Prior-Willeard, CEO of BNY Mellon CSD SA/NV, said: "This is a significant step in building out our CSD entity as it gives us the ability to provide straight-through processing for new Luxembourg-listed issues of securities and funds. That new ability and our recognised securities settlement system status are set to become ever more important as new regulations impact CCPs, UCITS and other regulated entities."
Robert Scharfe, CEO of the Luxembourg Stock Exchange, said: "This recognition will extend the range of securities eligible for listing and trading on the Luxembourg Stock Exchange. In addition, it leverages the network of links with CSDs participating in the TARGET2-Securities (T2S) project, including for securities issued outside of Europe."
In December 2012, following approval from the National Bank of Belgium and the granting of a Belgian Royal Decree, BNY Mellon became the first global custodian to launch its own separate CSD entity, which was incorporated as a non-bank subsidiary of The Bank of New York Mellon Corporation.
In May of last year, BNY Mellon CSD SA/NV signed the Framework Agreement with the Eurosystem to allow it to outsource settlement to the T2S settlement platform, set to go live in 2015, committing it to taking all necessary steps to become a part of the T2S infrastructure and to comply with the T2S governance regime.