Key points include:

Liquidity Management Tools (LMTs)

• Funds must select at least two LMTs (eg swing pricing, redemption gates) from specified legal annexes, ensuring alignment with their investment strategy and liquidity profile.
• These tools must be disclosed in fund documentation and communicated to the CSSF.

Operational procedures

• Detailed policies for activating/deactivating LMTs are mandatory.
• Notifications of LMT activations or deactivations must be submitted via the CSSF’s new eDesk platform.

eDesk modules

• LMT selection module(launching 23 March 2026): Funds must report their chosen LMTs and related policies by 16 April 2026.
• LMT activation module(launching 16 April 2026): Funds must notify the CSSF of any exceptional LMT activations.

Scope and compliance

• These rules apply to UCITS, AIFs, and other Luxembourg-domiciled funds, with specific provisions for money market funds and side pockets.
• The CSSF will notify relevant EU authorities of LMT activations.

This regulatory update aims to enhance investor protection and financial stability by ensuring robust liquidity management practices.

CSSF’s communique can be found here.