Investment fund services

02.08.2019

Luxembourg is a leading centre for the issuance and distribution of investment funds with more than EUR 2 trillion of assets under custody and now LuxCSD provides a key element to re-enforce Luxembourg's fund processing infrastructure.

LuxCSD provides settlement services, asset services, as well as issuance services for investment funds. The Central Facility for Funds (CFF) is LuxCSD’s post-trade infrastructure for investment funds. LuxCSD customer holdings of CFF Qualified Investment Fund Shares are maintained in one account per relevant register of shareholders in the name of LuxCSD, acting as nominee, which reflects the omnibus record (CFF Omnibus Account).

CFF provides standard settlement services (CFF Services) based on the synchronous exchange of cash and CFF Qualified Investment Fund Shares between the customers and CFF Settlement Agents within LuxCSD. CFF services are fully integrated with the existing CSD custody and settlement services on the T2S platform.

In addition to the settlement of primary market orders with the CFF Settlement Agent, CFF enables LuxCSD customers to receive and deliver CFF Qualified Investment Fund Shares from/to other counterparties.

The use of a Fund Issuance Account (FIA) by a CFF Settlement Agent, together with optimised reconciliation processes with CFF Transfer Agents, contributes to the settlement of orders in alignment with the relevant Investment Fund register.