EMX MESSAGE SYSTEM OFFERS LINK TO EUROCLEAR’S FUNDSETTLE

Posted October 24, 2008

BRUSSELS and LONDON – Euroclear Bank’s FundSettle platform has launched an automated link to EMXCo’s EMX Message System. FundSettle specializes in cross-border fund settlement and asset servicing, and EMXCo is a UK-based provider of fund order routing. This combination will further automate cross-border flows in UK funds, providing an integrated, automated and electronic means for order input through to settlement and asset servicing.

“Our aim has always been to rid the funds industry of the inefficiencies that manual processing brings,” says Max Wright, Chief Executive Officer of EMXCo. “Following the acquisition, we created the Funds Liaison Group to provide a forum for market consultation on future order routing and settlement solutions for funds.”

FundSettle’s use of the EMX Message System is part of a strategy begun with Euroclear’s acquisition of EMXCo, commenced in December 2006. FundSettle’s link to the EMX Message System promises straight-through processing [STP] levels of up to 90 percent for international distributors of UK funds. As a result, distributors using FundSettle will benefit from better input deadlines and quicker turnaround times for their fund order confirmations.

“This automated link is a concrete step down the evolutionary path of delivering integrated UK fund transaction processing within the Euroclear group,” says Ivan Nicora, Director and Head of Investment Fund Product Management at Euroclear. “Those FundSettle orders currently routed by fax to UK transfer agents will be a burden of the past as clients benefit from timelier processing, as well as substantial savings triggered by automation. Where a FundSettle client would typically pay a flat fee of 25 euros per order, with the delivery of STP order routing the cost is estimated to drop to an average of 7 euros per cross-border instruction.”