The UCITS directive provides rulings and guidelines for pre- and post trade checks to be done by UCITS compliant investment funds in relation with instruments acquired for the fund’s underlying assets. The aim of UCITS is to guarantee that the underlying portfolio constituents of a regulated fund are risk-transparent and liquid.
In this context a pre-trade check has to be done. A given instrument has to be classified as being eligible, conditionally eligible or ineligible in accordance with the categories defined by the CESR and the UCITS directive. In order to achieve this, the instrument should be checked against the algorithms of one of the relevant decision trees, these are:
- Transferable securities
- Money market instruments
- Investment funds (open and closed end funds)
- Financial derivatives
- Indices
SIX Telekurs’ partner firm CETRELSecurities has developed a specific set of rules mapping the UCITS eligibility assessment decision trees to the VDF data feed. The client generates an ad-hoc request originated by the trading or compliance environment, which is sent to CETRELSecurities. VDF data sets are acquired and cycled through the UCITSCheck application and an eligibility flag is calculated and returned to the client environment.
Based on the VDF data, the UCITSCheck solution is able to provide a clear eligibility assessment for more than 85% of all requested financial instruments.
To order this service, please contact your local SIX Telekurs sales office.
SIX Telekurs and CETRELSecurities: UCITSCheck