STOCKHOLM, January 20, 2011: Euroclear announces the inauguration of a fund-transaction service, designed to make fund-transaction processing, standardized and automated. Euroclear describes the aim of the new fund service as ‘a fully automated pan-European investment fund solution giving all Euroclear clients, easy access to domestic and international funds.’ This service is designed to benefit fund management firms, fund distributors and transfer agents in Sweden.
“The Swedish fund market, which includes over 1,300 funds with an estimated value of €200bn (SEK 1.9 trillion), is a sector where Euroclear Sweden can add value by reducing back-office processing costs and risks through automation and standardization. The consolidated and comprehensive fund service that Euroclear Sweden will offer is filling a gap in transaction processing that should cut client processing costs, compared with conventional manual processing procedures. We also intend to leverage Euroclear Bank’s cross-border FundSettle service in providing Swedish firms with access to over 50,000 foreign funds and trading counterparties from over 30 markets via Euroclear Sweden,” Said Anders Löfgren, head of product management at Euroclear Sweden, in the company press release.
Euroclear reports that several of their clients have already signed up as pilot users, for the new transaction service, these clients include: Carnegie Fonder, Catella Fondförvaltning, Nordnet AB, Öhman Fonder and Öhman Fondkommission.
Björn Pettersson, head of administration at Carnegie Fonder, said in the company press release. “We believe the initiative will create more efficient, secure and standardized administration of the ultimately, the end investor.”
Euroclear’s fund transaction service will be expanding by mid-2011, to include an automated fund-unit settlement and asset servicing. The aim is to allow for investors to hold funds in the same Euroclear Sweden account, as their equity and fixed-income. Moreover, the company also plans on providing a registry for fund management companies.
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