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IFDS is first to use Euroclear UK & Ireland’s upgraded fund services

London, 29 April 2013 – International Financial Data Services (IFDS), a leading international transfer agency service provider, is championing the recently upgraded investment fund processing services of Euroclear UK & Ireland (EUI). IFDS client M&G Investments and BNP Paribas Securities Services as distributor are the first to use EUI’s new electronic ‘order-through- to-settlement’ service, which includes cash and custody processing.

IFDS is responsible for supporting 40 financial organisations manage their assets worth in excess of GBP 477 billion (EUR 560 billion). By availing itself of EUI's full service offering, the IFDS fund management community can expect to reduce substantially the costs and risks of fund processing while benefitting from greater operational efficiencies through the comprehensive nature of EUI’s service.

EUI’s investment fund processing service is unique in that it is the only UK provider that offers such an extensive range of integrated post-trade services for investment funds. Clients can:

• electronically route orders for UK investment funds;
• automate fund unit settlement for subscriptions and redemptions;
• link cash movements derived from units bought and sold;
• reconcile stock and cash balances on a real-time basis;
• distribute and receive corporate action proceeds; and
• where applicable, provide seamless re-registrations and transfers
of client portfolios.

John Trundle, Chief Executive Officer of Euroclear UK & Ireland, commented: “Together with IFDS, we are delighted to offer a much sought after solution for the fund industry – a single point of access for all investment fund transaction needs. As the UK and Ireland’s central securities depository, we are the provider of proven, automated, highly secure and reliable services for the institutional and retail markets.”

Trundle continued: “Fund transactions settle with us on a delivery-versus-payment basis, meaning that cash and fund units are exchanged electronically and simultaneously. Full processing automation avoids major human processing errors. Moreover, we are pleased to offer a comprehensive and evolving range of related services to clients. For example, we recently introduced a centralised way to transfer funds, which will help to ease substantially the laborious and risky re-registration process.”

Richard Barrett, Director of Operations at IFDS, said: “We are committed to supporting our clients’ aspirations to improve order routing and settlement. At IFDS we are proud to be the first service provider to support this new fund settlement service, and we believe this evolution will be of benefit tothe fund industry.

Laurence Mumford, Retail Chief Operating Officer, at M&G said: “At M&G we pride ourselves on innovation and working with suppliers to give our clients improved services. EUI’s new fund settlement service is a pivotal step towards increased efficiency in the post-trade services for investment funds and we are delighted to provide this increased ability to our UK clients.”

James McAleenan, Head of the UK for BNP Paribas Securities Services, said: “We are delighted to be the pilot custodian on such an innovative project, which will no doubt enhance the post-trade services industry. We firmly believe that this initiative will improve efficiency, in particular regarding better use of liquidity and optimising payment processes, which are two of the biggest challenges today.”

Investment houses availing themselves of the enhanced range of investment fund services will see large cost savings and reductions in operational and counterparty risks. Trade-to-settlement cycles can be shortened by up to 60%, or typically to four business days after the trade is struck compared with up to 10 business days today. HM Treasury estimates that the UK fund industry could save between GBP 70 and GBP 290 million (EUR 80 – 315 million) per year by automating fund transaction processing and promoting real-time reconciliation.

Note to editors

BNP Paribas Securities Services, a wholly-owned subsidiary of the BNP
Paribas Group, is a leading global custodian and securities services provider backed by the strength of a universal bank. It provides integrated solutions to all participants in the investment cycle including the buy-side, sell-side, corporates and issuers.

The bank has a local presence in 34 countries across five continents, effecting
global coverage of more than 100 markets. It partners with clients to help
overcome complexity, while offering a one-stop shop for all asset classes,
both onshore and offshore, around the world.

Key figures as of 31 December 2012: USD 7,291 billion of assets under
custody, USD 1,333 billion assets under administration, more than 6,979
administered funds and 7,900 employees.


Euroclear UK & Ireland is the central securities depository (CSD) of the
United Kingdom, Jersey, Guernsey and the Isle of Man for all domestic
securities, and of Ireland for equities. Euroclear UK & Ireland provides
advanced, low-cost settlement facilities for a wide range of investment funds,
corporate and government securities, including those traded on the London
Stock Exchange and Irish Stock Exchange.

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