Euroclear Quantessence

Lowering costs and complexity in the iCPPI market

Insurance companies and banks are rapidly turning to investment support technologies, such as algo-asset allocation and robo-advice, to further automate portfolio management.

One of these, Individualised Constant Proportion Portfolio Insurance (iCPPI) products, offers an attractive automated risk management strategy: it runs pre-agreed asset allocation algorithms to provide capital protection to an individual’s fund portfolio.

Today, however, iCPPI products are time-consuming to set up and manage, adding an extra layer of operational complexity, cost and risk.

To support the growing automated investment support market – starting with iCPPI products – we have partnered with Quantessence, a UK-based fintech company, to establish an open architecture platform that manages the running of predefined asset allocation algorithms.

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Find out more about how Quantessence can benefit your business


Benefits of Euroclear Quantessence

The Euroclear Quantessence platform aims to connect distributors, asset managers and hedge providers (investment banks and re-insurers) to eliminate the operational burden related to launching and managing iCPPI products. The benefits of this new service include:

Distributors

Distributors

  • Flexible access to all participants – access a wide range of global hedge providers and asset providers via one operational link 
  • Reduced cost and risk – outsource your operational tasks 
  • Increased control and transparency – easy to use dashboards and direct access to your data
  • Reduced legal burden – standardised contractual framework
Hedge providers

Hedge providers

  • Reduced operational risk – outsource your iCPPI operations 
  • Improved market access and scalability – multiple counterparty connections via one link 
  • Increased control and transparency – easy to use dashboards and direct access to your data 
  • Cost effective – no fixed costs and no entry fee; you only pay for what you use 
  • Increased flexibility – we accept any individualised algorithm 
  • Reduced legal burden – standardised contractual framework
Asset providers

Asset providers

  • Additional distribution channel in a growing market for long term savings and annuity products
  • Increased efficiency – data is automatically uploaded and orders are managed via pre-agreed channels

Quantessence – part of the Euroclear group

Our investment in Quantessence is part of our innovation strategy to explore and develop new opportunities and technologies that increase efficiency and reduce costs for the financial industry.

By combining Quantessence's market expertise and Euroclear's strength of running and managing market infrastructure solutions, this third-party infrastructure will answer the industry’s need for lower capital costs, robustness and trust, in the growing market of automated investment support.

Quantessence is an appointed representative of G10 Capital Limited who are authorised and regulated by the Financial Conduct Authority. 

To find out more about how Quantessence can benefit your business, visit quantessence.com.