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

Visit quantessence.com

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:

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BBVA goes live with Euroclear's Quantessence

The Euroclear Quantessence platform provides technological and operational support to financial institutions who need constant, automated asset rebalancing. Transactions can range from bespoke macro transactions to highly individualised, protected savings products. The platform’s open-architecture infrastructure connects participants to the counterparties of their choice, whilst reducing the operational burden and time-to-market for algorithm-based products.

Quantessence enables insurance companies and banks to effortlessly tap into the new generation of personalised savings products, leading to increased customer satisfaction and long-term sustainable revenues.

See how BBVA will be using the platform on bbva.com

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

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

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 authorised and regulated by the Financial Conduct Authority.

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