Clearing and Settlement

tradingtrading

Post-trade activities are carried out in conjunction with LCH.Clearnet S.A. for clearing and with Euroclear Bank and Clearstream Banking Luxembourg for settlement

 

The Luxembourg Stock Exchange offers three types of post-trade models:

  • Central Counterparty (CCP) (guaranteed)
  • Pass-through (non-guaranteed)
  • Bilateral Settlement.

Trade processing

The Luxembourg Stock Exchange classifies its financial instruments in several trading groups according to the type of product, currency, liquidity, and so on.

Trade Processing LuxSE EN clearing

Complete details are in the appendix to trading manual.

Each security can be traded only in one channel at a time (Bilateral, Pass-through or CCP) according to its trading classification. However, the Luxembourg Stock Exchange can move a security from Pass-through to CCP according to the liquidity criteria or a market maker request.

Clearing members and LCH.Clearnet

LCH.Clearnet S.A. operates as a central counterparty for trades and so ensures that trades are cleared rapidly and cost effectively. The novation process which consists of the interposition of the CCP between buyers and sellers, allows members to profit from the advantages of a CCP system, such as post-trade anonymity, netting and counterparty risk protection, leading to an improved liquidity and price formation.

LCH.Clearnet S.A. carries out its activities via indirect and direct relationships with members of the Luxembourg Stock Exchange.

  • Indirect relationship:
    Member firms of the Luxembourg Stock Exchange may choose to operate as Non-Clearing Members (NCM) of LCH.Clearnet S.A. In this way, they sign a clearing agreement with a General Clearing Member firm (GCM) who clears trades on their behalf.
  • Direct relationship:
    Luxembourg Stock Exchange Members can choose to operate via a direct relationship with LCH.Clearnet S.A. In this respect they can opt to become either a General Clearing Member (GCM) or an Individual Clearing Member (ICM).

The difference being, GCMs may clear their own trades and trades executed by NCMs while ICMs can only clear their own trades.

European Code of Conduct for Clearing and Settlement

The Luxembourg Stock Exchange has signed the European Code of Conduct for Clearing and Settlement which aims at achieving greater efficiency and further integration of European capital markets, by allowing investors to trade European securities within a consistent, coherent and cost-efficient European framework.

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Contact

Market and Surveillance /
Market Development
Guy Weymeschkirch
Tel: +352 47 79 36 236
Fax: +352 47 79 36 269
gwe@bourse.lu
Becoming a Trading Member

Tel: +352 47 79 36 200
membership@bourse.lu

Maurice Bauer
Tel: +352 47 79 36 248
mba@bourse.lu

Guy Weymeschkirch
Tel: +352 47 79 36 236
Fax: +352 47 79 36 269
gwe@bourse.lu

Société de la Bourse de Luxembourg S.A.
35A Boulevard Joseph II
B.P.165
L-2011 Luxembourg

 

Market Opening Times

Monday - Friday

9:00  am - 5:35 pm

 

Market Rules and Regulations

Informational Brochures