Clearstream, the global liquidity provider of Deutsche Börse Group, announced February 21 that Singaporean investment funds are eligible for order routing, settlement and custody through its existing infrastructure. The Singaporean funds are made available on the Clearstream order routing platform Vestima+ and its post-trade infrastructure for funds, the Central Facility for Funds, for settlement. Investment funds from other Asian jurisdictions will follow after regulatory approval.
Philippe Seyll, Member of the Executive Board of Clearstream and Head of Investment Funds Services, said: “We are happy to include the first Asian funds on our systems and to allow international investors easy access to these financial instruments. Through our order routing platform Vestima+, we bring more than 82,000 investment funds to investors around the globe. We observe a tremendous appetite by Asian investors for investing into the funds that we hold on our platform.”
Clearstream and the Deutsche Börse cash market Xetra recently launched the trading of mutual funds via stock exchange. The new service is especially interesting for investors in non-European timezones as stock exchange execution will allow individual funds units to be priced and monetized immediately and not, as currently the case, the next business day once the net asset value of a funds share has been calculated. Once traded on stock exchange and pooled in the Clearstream systems, funds can also be re-used as collateral.
Clearstream has its headquarters in Luxembourg. With more than 2,200 billion euro (December 2010) of assets under management, Luxembourg is the second-largest funds market in the world after the US. There are more than 3,500 collective investment schemes administered and distributed globally out of the Grand Duchy. The average daily net inflows into Luxembourg funds reached approximately 1 billion euro in 2010.