Euroclear FundSettle Cuts Prices To Attract In-House Mutual Fund Business

FundSettle, the mutual fund order processing service owned by Euroclear, has expanded its reach beyond third party funds to include clients' in house funds for the first time. Euroclear believes it will encourage users to centralise all of their fund

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FundSettle, the mutual fund order processing service owned by Euroclear, has expanded its reach beyond third-party funds to include clients’ in-house funds for the first time. Euroclear believes it will encourage users to centralise all of their fund-processing business with the Brussels-based ICSD.

Euroclear says it has introduced a low-cost, sliding-scale tariff has to encourage users to support the new initiative. The ICSD says the price cuts are equivalent to a reduction of a minimum 60% on the servicing tariff for third-party funds. It says no other fund-industry service provider offers specific pricing for in-house fund-transaction processing in this manner.

In-house funds – where the fund distributor and fund promoter are part of the same company – represent around 80% of all funds in the industry, says Euroclear.

“While third-party fund processing on FundSettle continues to grow – by more than 140% in the past year, in fact – client demand to centralise all of their fund-processing business, including their own in-house funds, has reinforced FundSettle’s role as the leading market infrastructure for fund-transaction processing,” says Ivan Nicora, Director and head of Investment Fund Product Management at Euroclear Bank. “We are delighted to be able to serve the market’s needs for both third-party and in-house funds in this way.”

Launched in November 2000, FundSettle aims to automate and standardize the processing of offshore and domestic fund subscriptions, redemptions, transfers and switches in Europe.

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