JPMorgan announced on Tuesday the selection of London Stock Exchange Group to provide settlement, custody and asset servicing through a securities depository LSEG is establishing in Luxembourg.
“We are pleased that J.P. Morgan has confirmed its intention to appoint London Stock Exchange Group as provider of its settlement, custody and asset servicing, offering a solution to their international collateral management business,” Raffaele Jerusalmi, the CEO of Borsa Italiana and director of capital markets at LSEG, said. “J.P. Morgan is a leading collateral management provider and the establishment of a new CSD in Luxembourg alongside LSEG’s existing infrastructure and expertise will help meet the needs of its customer base.”
The European Market Infrastructure Regulation requires margin and default contributions posted to a central counterparty to be held in a securities settlement system, whenever possible. LSG’s new central securities depository, pending regulatory approval, is expected to become operational in the first half of next year.
“We are delighted to choose London Stock Exchange Group for CSD services, which shares our commitment to making regulatory change more straightforward for clients looking to manage collateral effectively,” Kelly Mathieson, the head of collateral management at JPMorgan, said. “With this development, we believe that we are helping our clients to adhere to EMIR rules.”