London Stock Exchange Group’s new central securities depository (CSD), globeSettle, has been selected by LCH.Clearnet Ltd and CC&G as an additional securities collateral location for their members. The agreement will allow clients and members of both central counterparties (CCPs) to benefit from a straight through collateral and custody solution creating a new pool of collateral liquidity in Europe. Under EMIR, CCPs are required to hold collateral securities posted as margin at a securities settlement system. globeSettle is currently working with the Luxembourg regulators in order to achieve this second authorisation.
Alessandro Di Michele, Chairman, globeSettle said: “As part of a global Group strategy, we are delighted that LCH.Clearnet Ltd and CC&G will be the first joiners at globeSettle appointing us as a collateral location venue, which will help improve operational efficiencies for its clients and members whilst reducing risk.
“globeSettle will expand the scope of LSEG’s settlement and custody services. Our commitment to operate an open-access model enables us to assist a broad range of customers meet the new requirements arising from on-going financial regulatory change. In particular we believe that through our platform operating in real time 22 hours out of 24, we can bring a significant change in the operating strategies of brokers, asset managers and investment banks, allowing global operators to really think and act globally both at Treasury and investment level.”
In July 2013, the Group confirmed plans to launch a new central securities depository (CSD) business, based in Luxembourg. In May, the new CSD, globeSettle, was granted a licence as a Professional of the Luxembourg Financial Sector and received regulatory approval to start operations from the Ministry of Finance and CSSF. globeSettle remains on track to commence operations in summer 2014. As previously announced globeSettle will provide settlement, custody and asset servicing for J.P. Morgan’s international collateral management division.