Central Facility for Funds (CFF) - Financial definition
Financial acronyms
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Concise definition of the term Central Facility for Funds
The Central Facility for Funds (CFF) is a post-trade infrastructure operated by Clearstream which is designed to provide greater efficiency and cost-effectiveness in the settlement and custody process for investment funds.
Comprehensive definition of the term Central Facility for Funds
CFF provides standard settlement services based on the synchronous exchange of cash and securities between:
- Fund distributors
- Custodians
- Transfer agents
The processing risk is significantly reduced compared to still prevailing processes in the industry where cash and securities settlement is separated. Furthermore, CFF enables the management of corporate actions and the distribution of trailer fees. All of which is backed up by efficient reporting services on settled positions and the provision of a central source of static fund data.