International depository Clearstream says it has signed HSBC Trinkhaus & Burkhardt and back office outsourcing specialist European Transaction Bank (etb) to Vestima+, its new cross border funds processing platform which will be launched in October 2004.
Vestima+ will deliver country-specific services for each of Europe's main domestic markets, beginning with France and Germany. The service - which is based on Clearstream's Fors electronic routing software and original Vestima STP system - will provide a single system for access to multiple fund markets and enable users to select settlement routes and custody providers.
Bernd Sperber, managing director, etb, says the new service will replace the existing Investro system: "We can see direct bottom-line benefits to our business and estimate cost reduction of up to 80% for non-domestic third party funds. We see the benefits accruing from increased STP rates close to 100 percent and a reduction of the multiplicity of systems."
Commenting on the new Vestima+ service, Volker Potthoff, managing director, banking and custody services, Clearstream, says: "The response from the industry has been extremely supportive with both existing and new customers being quick to realise the direct advantages from the new open settlement routes coupled with our STP enhancing order-routing technology.
"This sector needs to develop much greater level of processing efficiency and Vestima+ delivers an innovative market infrastructure that directly meets the varying needs of the industry."
Existing Clearstream customers will be migrated to the new service when it is launched in October.