Through the Vestima+ service, any distributor using a Clearstream account will be able to settle through a delivery-versus-payment (DVP) process in a fully automated way with French funds centralised by IXIS in Paris. Vestima+ will communicate with IXIS using SWIFT messages and utilise the specific template issued by the French Fund Market Practice Group (FFPMG).
Jean-Marc Eyssautier, Head of Operations for custody and banking services at IXIS in Paris stated, “The European Fund Industry is desperately lacking automation for fund transactions in the areas of both order processing and secured settlement. By combining the Vestima+ service with SWIFT communication standards and a true DVP process, IXIS will provide our customers with a very secure way of distributing their funds outside of France. Clearstream’s new initiative to deliver a fully automated process for cross-border distribution is combining security of the French domestic infrastructure with high flexibility of the new Vestima+ service.”
Bruno Zutterling, Director for Investment Fund Services at Clearstream added, “This agreement from another major player in the French market recognizes the efforts done by IXIS to enhance automation rates in the fund industry. By complying with French market practices, Clearstream enables fund distributors to access domestic markets as transparently as international ones. This highlights the value added by Vestima+ as an order processing hub adopting a multi-domestic approach.”
The Vestima+ service is initially targeting the differing needs of each of Europe’s main domestic markets beginning with France and Germany and the international market centred in Luxembourg and will provide a single solution for multiple fund markets. The service will be launched on 22 January 2005.
