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Clearstream’s one-stop shop solution for third party funds processing was key decision criteria
- As a major market player with USD 6.1 trillion in assets under custody and
USD 960 billion under management, Northern Trust will boost volumes on Clearstream’s Vestima platform
- Vestima is well placed to meet regulatory requirements for more security and efficiency in fund custody – another key decision factor for Northern Trust
Northern Trust, a global leader in wealth management, asset servicing, asset management and banking, has chosen Clearstream to handle the third-party fund processing of their investment fund activities. The decision was mainly motivated by Clearstream’s one-stop shop Vestima solution for the processing of third party funds, as well as their commitment to the funds industry and its automation.
Vestima is a recognised ‘Commercial Settlement System (CSS)’ and delivers full automation across order placement, DVP settlement and asset servicing. This fund processing is supported from the same platform as the servicing of customers’ fixed income, equities and warrants, thereby ensuring a streamlined process for all asset classes.
Northern Trust’s Global Fund Services business provides custody, fund administration and investment operations outsourcing solutions to investment managers across the globe and across the spectrum of asset classes.
Regulators have recently pushed for more efficient fund processing and custody solutions to ensure the highest security for clients’ fund assets. Clearstream’s fund custody offering and its ability to process the entire client fund portfolio on a single platform meets these requirements by ensuring high levels of automation and asset security.
Toby Glaysher, Head of Northern Trust's Global Fund Services business in Europe, Middle East and Africa, said: "The decision to outsource our mutual fund safekeeping and trade execution will result in greater efficiencies for both Northern Trust and our clients. Clearstream were an excellent fit for us in terms of their service, coverage, expertise and partnership approach.”
Philippe Seyll, Head of Investment Fund Services and Co-CEO of Clearstream Banking, said: "We are delighted that Northern Trust has chosen Clearstream to provide order routing, DVP settlement and custody for their investments into third-party funds. Our expanded hedge fund custody services following the acquisition of Citco Global Security Services (CGSS) in Cork as well as our increased mutual fund execution capabilities triggered this new relationship. We welcome Northern Trust to our ever-growing community of Global Custodian clients".
