The Luxembourg Stock Exchange has announced that it will use SWIFT in the development and rollout of its new market infrastructure for European investment funds.

The infrastructure, which will be based in Luxembourg, will provide the “backbone” of services for cross-border distribution of funds in Europe and globally. Initially, these will include services for order management, such as order routing, as well as value-added information and reporting services. It is expected to be launched in the third quarter of 2013.

“Industry players have long recognised the need for streamlining fund distribution processing and we very much support an efficient and fully-fledged market-driven solution. Ultimately, the fund market infrastructure will deliver a Luxembourg solution to the global fund distribution challenge,” Dominique Valschaerts, member of the LuxSE executive committee, said in a statement.

The fund market infrastructure initiative is backed by a consultation group of international participants operating in Luxembourg, including transfer agents and distributors involved in cross-border fund distribution.

Belgium-headquartered SWIFT is a member-owned cooperative which provides communications platforms, products and services to connect more than 10,000 financial institutions and corporations in 212 countries.