Clearstream is seeking to strengthen its business in the LatAm markets, by signing Latin Clear Panama as the first transfer agent to join its investment funds platform, Vestima.
Over the course of this month, investment funds domiciled in Panama will be eligible for order routing, settlement and custody at Clearstream.
The Vestima suite of services aims to bring increased operational efficiency and security benefits to the Latin American financial markets by providing centralised delivery versus payment (DVP) settlement services based on synchronous exchange of cash and securities between fund distributors and transfer agents.
Philippe Seyll, member of the executive board of Clearstream and head of investment funds services, said the cooperation with Latin Clear and the migration of Panama domiciled funds to Vestima was key in light of the company’s Latin America funds strategy as it allowed international investors to gain easy access to these financial instruments.
“We are pleased to welcome the first TA in Panama, a major domicile for cross-border distribution of investment funds in Latin America, where markets are gradually opening up to offshore funds,” he said. “Our objective is to become a partner of choice for the financial institutions in the region that wish to enhance their investment funds offering.”
Latin Clear is acting as central hub for Latin America as it has established settlement links to other markets in the region, such as Costa Rica, Nicaragua, El Salvador and Venezuela. Access to the Dominican Republic is in progress.
Panama is currently attracting an increasing number of international investors because of its stable government and the size of its financial sector. It is the largest international banking centre in Latin America with more than 150 banks from more than 35 countries and offers easy access to other Latin American markets.
