Distributed Ledger Technologies (#dlt ) will be a major development in the digital transformation and have a significant impact on the financial sector in the decade to come. Our LuxCMA Infrastructure Working Group has the pleasure to release today their latest paper illustrating how DLT can be leveraged by the entire value chain to support the issuance, transfer and servicing of a debt instrument in the capital markets.
Luxembourg is widely recognised as a major player in the international debt capital markets, with a strong market infrastructure, a responsive regulator and unparalleled economic stability. However, navigating this ecosystem is not always easy. To assess and understand the different components of the Luxembourg primary market value chain with a comprehensive review of each of the related main activities and key, have a look to our Luxembourg Capital Markets Landscape for Debt Instruments.
With the announced discontinuation date for London Inter-bank Offered Rates (LIBOR) at the end of 2021, LuxCMA - Luxembourg Capital Markets Association invites the different stakeholders across the securities value chain, from issuers to investors, to consider taking the necessary actions in order to ensure, where appropriate, a smooth transition to Alternative Reference Rates (ARR) / Risk-Free Rates (RFR) in replacement of Interbank Offered Rates (IBOR), in both their existing and future securities issuance legal documentation.
Luxembourg’s legal framework now recognises the use of #DLT technology to issue and settle dematerialised securities. Bill 7637 (to be referred to as the Blockchain II Act 2021) was approved by the #Luxembourg Parliament on 21 January 2021.