Securities market landscape in Luxemburg an overview of market infrastructures and banking institutions operating in the securities processing industry

Abstract

Executive Summary This project-dissertation has been produced from August 2015 until May 2016, in collaboration with the Management Consulting department of KPMG Luxembourg which aims at carrying out a survey in order to get a better understanding of the interactions between the different actors of the Luxembourg’s securities industry. In particular, market infrastructures and banking institutions, which fulfill key functions throughout the life cycle of a security, are of primary concern. A survey questionnaire and several meetings with the actors are the means to gather both quantitative and qualitative data which will help gauge respondents’ securities-related activities. The goal of the project-dissertation is precisely to identify the types of actors and to explore the flows they generate in securities markets. In that respect, it starts with a review of literature which aims at defining the key functions in the securities industry fulfilled by the actor types through their service offerings. Then, it examines the industrial organisation of the securities processing activities. Based on the data provided by the panel of participants, the project-dissertation first provides KPMG Luxembourg with a snapshot of each type of actor, in terms of customer base, network of markets and products & services. Then it provides a snapshot of the core business activities performed by the actor types, in terms of flows they generate and their operational set up. Finally, the project-dissertation focuses on the key features of Luxembourg’s marketplace and gives insights into ongoing transformations.