Credit Suisse Fund Services (Luxembourg) SA joins LuxCSD as first Transfer Agent

28.11.2013
  • More than 1,500 investment fund share classes handled by Credit Suisse Fund Services (Luxembourg) SA now available for settlement in EUR central bank money
  • Reduced settlement risk through direct cash access at central bank
  • LuxCSD will provide access to participants of other Central Securities Depositories (CSDs) via future, European-harmonised TARGET2-Securities (T2S) settlement platform

As the first Transfer Agent (TA) based in Luxembourg to do so, Credit Suisse Fund Services (Luxembourg) SA has joined LuxCSD to make more than 1,500 investment fund share classes available for DVP settlement in EUR central bank money – DVP (delivery versus payment) is the market’s preferred settlement choice since it is more efficient, more secure and offers more real time settlement compared to the free of payment (FOP) option. The migration to LuxCSD results in a series of benefits for investors in Credit Suisse investment funds, such as reduced settlement risk through direct access to central bank money. Thanks to LuxCSD’s link to Clearstream’s investment funds order routing platform, these funds are available to both domestic and international counterparties.

In view of the implementation of TARGET2-Securites (T2S) – the future, harmonised platform for settlement that the European Central Bank is currently developing, replacing the current set up of domestic CSDs – LuxCSD will support Credit Suisse Fund Services (Luxembourg) SA to be best positioned for the growing demand from distributors/ investors to facilitate settlement through a T2S based account.

Distributors of Credit Suisse funds will be able to consolidate settlement against domestic and cross-border counterparties on one single platform and benefit thanks to LuxCSD’s link to Clearstream from both market models: the current (I)CSD/TA and the future T2S model.

Claude Metz, Head of Transfer Agency at Credit Suisse Fund Services (Luxembourg) SA said: “With T2S approaching we expect an increasing demand from fund distributors to facilitate CSD settlement in order to benefit from T2S. The migration to LuxCSD ensures we are well positioned for a smooth transition to T2S - the future, harmonised settlement platform in Europe.”

“We are pleased to welcome the first Transfer Agent using LuxCSD’s fund issuance and settlement services. The migration of fund shares handled by Credit Suisse is a further milestone for LuxCSD in fulfilling its mandate to prepare the Luxembourg investment funds industry for the implementation of T2S and to ensure an easy transition for market participants”, said Patrick Georg, LuxCSD’s General Manager.

About LuxCSD

LuxCSD is jointly (50/50) owned by the Banque centrale du Luxembourg (BCL) and Clearstream International S.A. LuxCSD offers custodians and distributors across Europe excellent custody and added value services built on a highly efficient settlement process with access to many counterparties. Settlement of securities transactions in central bank money reduces risk for financial market participants. The CSD fully supports dematerialised securities as these will significantly reduce inefficiencies, risks and costs for the industry. LuxCSD can also advise issuers in dematerialising existing physical securities.

The company was created in July 2010 within the context of the future implementation of the Eurosystem’s TARGET2-Securities (T2S) initiative. LuxCSD will provide the Luxembourg financial market infrastructure with a national access point to T2S and so will enable Luxembourg market participants to reduce their settlement risks as delivery versus payment (DVP) settlement in central bank money is widely recognised as the safest way to achieve securities settlement. This is an important factor in helping the Luxembourg market to remain competitive as a financial centre once the new European settlement infrastructure is established.

The company’s commitment in May 2012 to join TARGET2-Securities marked another milestone in the young life of the Luxembourg CSD. In March 2013, LuxCSD has received approval by the European Central Bank (ECB) for its Securities Settlement System (SSS) being eligible for use in the collateralisation of Eurosystem credit operations. LuxCSD is based on the competence of its founding shareholders, each bringing their respective expertise in risk-free central bank money and cross-border securities processing to the venture.

Further information: www.luxcsd.com

About Credit Suisse

AG Credit Suisse AG is one of the world's leading financial services providers and is part of the Credit Suisse group of companies (referred to here as 'Credit Suisse'). As an integrated bank, Credit Suisse offers clients its combined expertise in the areas of private banking, investment banking and asset management. Credit Suisse provides advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 46,400 people. The registered shares (CSGN) of Credit Suisse's parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York.

Further information: www.credit-suisse.com