VP decides to close down VP LUX
VP SECURITIES is now able to fully support issuers with EUR bonds eligible in the ECB out of Denmark. The historic rationale for a Luxembourg operation is therefore no longer present, and VP expects VP LUX to be closed down by the end of 2018.
When VP SECURITIES established VP LUX in 2008 the intention was to support issuers with access to eligibility of bonds to be financed in the ECB. Now, VP has had a EUR connection to T2S since September 2016, and customers are now issuing EUR bonds directly in VP. VP also obtained the CSDR license in January 2018, giving VP ability to passport services throughout Europe. The initial business rationale of VP LUX is no longer present as VP has taken these steps towards harmonisation and internationalisation.
“We have decided to close down VP LUX,” says CEO Niels Olsen from VP SECURITIES. “Technically, VP can perform the activities out of VP in Copenhagen having all the same advantages in terms of relationship to the ECB and to the European securities market. We no longer see the motivation for continuing with our business in Luxembourg as e.g. T2S and CSDR both support our goal for simplification.”
The closure of VP LUX will take place in coordination with authorities, central banks, T2S, existing customers and other stakeholders. All relevant authorities are informed by VP. Business will continue as usual with support to customers according to current agreements in the remainder of 2018.