The Vestima+ service is targeting the differing needs of each of Europe’s main domestic distributors and provides a single solution for multiple fund markets. The main features of the service include near-100-percent straight-through processing (STP) and the ability for fund distributors to select their preferred settlement mode, delivery versus payment (DVP) or free of payment (FOP) and to choose their own optimal settlement route and custody providers. Clearstream is now evaluating expanding the service to other markets such as Italy and the UK.
The benefits of the service and the open settlement model have been readily accepted by many major market participants with a steady stream of organizations signing up for the service throughout the last year. This trend is expected to continue and will create important automated volumes in domestic markets as cost efficiency benefits of over 50 percent are possible.
Clearstream has worked with market participants to design the service enabling customers to leverage their existing domestic infrastructures in order to reach the highest cost reductions level. Through Vestima+, and for the first time in the fund market, customers can select wherever they wish to settle and whether to use or not Clearstream’s integrated settlement and custody services.
Jeffrey Tessler, CEO of Clearstream International stated, “The success of the Vestima+ launch represents the first milestone of a collaborative process of working with market participants to create a solution that meets their needs. As a result, the service is open, unique, innovative and delivers cost-efficiency where our customers need it most. Now we will look forward to expanding its market coverage.”
