LuxSE introduces new post-trade model
25 October 2022 Luxembourg
Image: nateejindakum/stock.adobe.com
The Luxembourg Stock Exchange (LuxSE) has partnered with Italy-based BFF Bank to launch its new post-trade model.
The settlement process will simplify the post-trade process of LuxSE and will allow for a streamlined and efficient settlement of securities transactions made on a channel encompassing 21,500 tradable instruments.
LuxSE operates its markets on the Optiq trading platform, offering the possibility of bilateral, non-guaranteed and guaranteed settlement channels.
With the new set up, the non-guaranteed settlement model will be replaced with straight-through processing (STP). Users of the platform will no longer require a clearing membership to access this service.
In addition, trading members can select between Euroclear Bank and Clearstream Banking Luxembourg as their International Central Securities Depository (ICSD).
According to the stock exchange, LuxSE will provide its trading members with a daily trade reconciliation file including the indication of the counterparties. While BFF Bank will generate and dispatch settlement instructions to ICSDs based on the trading information provided by the Optiq trading system.
Pierre Schoonbroodt, a member of the Executive Committee at LuxSE says: “We are delighted to establish this new partnership with BFF Bank, which enables us to significantly improve and simplify the post-trading experience for our trading members.
“Through this collaboration, we are now able to offer a new electronic channel to send settlement instructions in a fast, integrated and secure way, without making any changes to the order transmission and trade confirmation process we have established with our trading members.”
Enrico Tadiotto, vice president of the Transaction Services Department at BFF Banking Group, adds: “We are proud of starting this partnership with LuxSE, making one of our post-trade models available to the market, and being a reference partner for our customers in providing innovative and tailored solutions.”
The settlement process will simplify the post-trade process of LuxSE and will allow for a streamlined and efficient settlement of securities transactions made on a channel encompassing 21,500 tradable instruments.
LuxSE operates its markets on the Optiq trading platform, offering the possibility of bilateral, non-guaranteed and guaranteed settlement channels.
With the new set up, the non-guaranteed settlement model will be replaced with straight-through processing (STP). Users of the platform will no longer require a clearing membership to access this service.
In addition, trading members can select between Euroclear Bank and Clearstream Banking Luxembourg as their International Central Securities Depository (ICSD).
According to the stock exchange, LuxSE will provide its trading members with a daily trade reconciliation file including the indication of the counterparties. While BFF Bank will generate and dispatch settlement instructions to ICSDs based on the trading information provided by the Optiq trading system.
Pierre Schoonbroodt, a member of the Executive Committee at LuxSE says: “We are delighted to establish this new partnership with BFF Bank, which enables us to significantly improve and simplify the post-trading experience for our trading members.
“Through this collaboration, we are now able to offer a new electronic channel to send settlement instructions in a fast, integrated and secure way, without making any changes to the order transmission and trade confirmation process we have established with our trading members.”
Enrico Tadiotto, vice president of the Transaction Services Department at BFF Banking Group, adds: “We are proud of starting this partnership with LuxSE, making one of our post-trade models available to the market, and being a reference partner for our customers in providing innovative and tailored solutions.”
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