Securities depository Clearstream is launching a cross border funds processing platform, based on its Fors electronic routing software and Vestima STP system, that will provide direct access to the European fund markets.
Clearstream plans to extend its Vestima service to offer country-specific services for each of Europe's main domestic markets, beginning with France and Germany.
The service, which will be launched in the summer, will provde a single system for access to multiple fund markets and enable users to select settlement routes and custody providers.
Clearstream says Fund distributors may elect to choose a direct settlement and custody functiion with the fund, use their own existing settlement processes and keep custody with the local CSD or utilise its settlement and custody facilities.
Bruno Zutterling, director, investment funds, Clearstream, says: "What we have created is a solution that recognises the difference in markets within Europe. With our new platform, we are delivering solutions to each market accordingly."
Volker Potthoff, managing director, banking and custody services, Deutsche Börse Group, adds: "We are delivering a very flexible solution where domestic and offshore market participants can elect which elements of the service they prefer in order to minimise their own costs and ultimately reduce the costs incurred by the end-investors."