The Luxembourg Stock Exchange (“LuxSE”) has published on 2 September 2024:
- an updated version of its Rules and Regulations (Edition 09/2024) (“R&R”)
- an updated version of its Markets Trading Manual (“Trading Manual”) as well as an updated version of the appendix on LuxSE’s professional segments (the “PS Appendix”).
The updated versions of the above documents are available here on the LuxSE website.
These changes have been introduced to inter alia facilitate the migration of clearing services as well as to ensure compliance with EU regulations and market standards.
Migration of clearing services
The LuxSE has revised its R&R by updating and streamlining the appointment process of clearing organisations. Rule 2401.A.1 of its R&R no longer identifies the clearing organisation by name; instead the appointment of such institution will be communicated through a notice published on LuxSE’s website and a written notification addressed directly to its members.
In this context, LuxSE has published a notice that it is currently undergoing a migration process of the clearing services provider, concerning selected financial instruments admitted to its markets, from Banque Centrale de Compensation S.A. (LCH) to Euronext Clearing, the Euronext Group’s Central Counterparty (CCP). A new Notice will be issued once the migration’s effective date is confirmed, anticipated by the end of 2024. Until the migration is finalized, LCH will continue to serve as clearing service provider.
Compliance with CSDR
The LuxSE has updated the R&R and Trading Manual to align with the latest revisions to Regulation on improving securities settlement in the EU and on central securities depositories (the “CSDR”) and current market standards, particularly regarding the settlement discipline regime and the buy-in process. These updates relate mainly to Rule 5305.4, which defines the cases in which the settlement discipline regime, specifically the buy-in process, does not apply.
Additionally, the R&R has been simplified, whereby two new sections have been introduced into the TM:
- Buy-in process, and
- Sell-out process.
These sections mirror each other, addressing situations where potential failures are caused by either the seller or the buyer.
Further explanation
Further explanation by the LuxSE on the changes to the R&R and the Trading Manual is available here.
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