Euroclear Bank’s FundSettle platform has launched an automated link to EMXCo’s EMX Message System. FundSettle specialises in cross-border fund settlement and asset servicing, and EMXCo is the UK’s leading provider of fund order routing.
This combination will further automate cross-border flows in UK funds, providing an integrated, automated and electronic means for order input through to settlement and asset servicing.
Following an announcement in December 2006, whereby Euroclear agreed to acquire EMXCo, both firms have worked towards delivering the Euroclear group’s fund strategy. FundSettle using the EMX Message System forms part of this strategy.
Building on years of experience in servicing more than 2,500 UK funds and 37,000 funds worldwide, FundSettle’s link to the EMX Message System will significantly benefit international distributors of UK funds by delivering STP levels of up to 90%. As a result, distributors using FundSettle will benefit from better input deadlines and quicker turnaround times for their fund order confirmations.
Ivan Nicora, Director and Head of Investment Fund Product Management at Euroclear, said: “This automated link is a concrete step down the evolutionary path of delivering integrated UK fund transaction processing within the Euroclear group. Those FundSettle orders currently routed by fax to UK transfer agents will be a burden of the past as clients benefit from timelier processing, as well as substantial savings triggered by automation. Where a FundSettle client would typically pay a flat fee of EUR 25 per order, with the delivery of STP order routing the cost is estimated to drop to an average of EUR 7 per cross-border instruction.”
Max Wright, Chief Executive Officer of EMXCo, said: “I am delighted to welcome FundSettle to the EMX Message System. Our aim has always been to rid the funds industry of the inefficiencies that manual processing brings.
Following the acquisition, we created the Funds Liaison Group to provide a forum for market consultation on future order routing and settlement solutions for funds.”
