Northern Trust chooses Clearstream for its fund custody business
- 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".
As an international central securities depository (ICSD) headquartered in Luxembourg, Clearstream provides the post-trade infrastructure for the Eurobond market and services for securities from 53 domestic markets worldwide. Clearstream’s customers comprise approximately 2,500 financial institutions in more than 110 countries. Its services include the issuance, settlement and custody of securities, as well as investment fund services and global securities financing. With more than 13 trillion Euros in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities.
With over 190,000 investment funds on its fund processing platform Vestima and more than 10 million settlement instructions processed every year, Clearstream is one of the leading providers of investment funds services worldwide. The company is also the largest contributor to the standardisation of funds processing.
Vestima - Facts & Figures
- Over 140,000 mutual fund ISINs, and 50,000 hedge funds on Vestima
- Around 1,000 customers in 73 countries use Vestima as a unique venue for funds processing
- Customer segments cover universal banks, private banks, retail banks, global and local custodians, asset managers, fund platforms and other Institutional investors
- 10 million STP market transactions per year, with over EUR 1,300 bn international fund assets deposited at Clearstream
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has offices in the United States in 19 states and Washington, D.C., and 20 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2015, Northern Trust had assets under custody of US\\$6.2 trillion, and assets under management of US\\$946 billion. For more than 125 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation.