Northern Trust has chosen Clearstream to handle the third-party fund processing of its investment fund activities.
The bank’s decision to move providers was mainly motivated by Clearstream’s Vestima solution for the processing of third-party funds, as well as its commitment to the funds industry and its automation.
Vestima is a commercial settlement system (CSS) and delivers full automation across order placement, deliver-versus-payment 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 solution to investment managers across the globe and asset classes.
Toby Glaysher, head of Northern Trust's global fund services business in Europe, Middle East and Africa (EMEA), commented: "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, added: “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.”
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