CFF acts as a central hub to streamline the post-trade processes in the cross-border investment funds industry. It provides standard settlement services based on the synchronous exchange of cash and securities between fund distributors, custodians and transfer agents. This serves to reduce costs and risks and to increase efficiency through simplified operational procedures and greater standardization. In addition, fund promoters will benefit from a central hub that supports international distribution.

Clearstream designed CFF primarily for investment funds domiciled in Luxembourg, the largest market in Europe for international funds with close to EUR 2,000 billion in assets under management. It has also proven attractive to other funds domiciles such as Belgium, Ireland, Switzerland and the UK.

Since its launch in March 2007, CFF has attracted 37 members and offers access to more than 28,000 fund classes. CFF offers an efficient and cost effective solution to the settlement and custody processes in an industry still characterized by lack of standardization, high levels of manual processing for order trading and the requirement to interface with multiple parties.

"This award shows that the investment funds industry recognises Clearstream's efforts in putting funds post trade processes as streamlined and efficient as those of equities and bonds", said Philippe Seyll, Head of Clearstream's Investment Funds business. "We will continue leading the way towards the much needed standardization of the investment funds industry post trade operations."

While the funds industry has grown by 80 percent since 2005, its post trade activity is still characterized by high fragmentation and thus operational risk. According to a study by Deloitte, the cross border investment funds industry could save at least 30 percent of processing costs and gain over EUR 300 million by streamlining trading, settlement and custody of cross-border mutual funds.