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Vontobel choses Clearstream as partner for hedge funds business

First Published 27th June 2017

Clearstream to streamline Bank Vontobel's third-party hedge fund trading and custody business.

Philippe Seyll, Clearstream

Philippe Seyll, Clearstream

Vontobel has chosen Clearstream Banking as strategic partner to streamline and consolidate its third-party hedge fund processing activities. Clearstream's investment funds processing infrastructure Vestima enables processing of all types of funds from mutual funds to hedge funds on a single platform.

The current regulatory agenda has made asset safety a key concern for financial institutions and the asset management industry. The fifth Undertakings for Collective Investment in Transferable Securities (UCITS V) directive and the Alternative Investment Fund Manager Directive (AIFMD) are reshaping the operational landscape of the European investment funds market, leading to a growing need for transparency and efficiency in investment funds processing.

Centralised solutions, such as Clearstream's Vestima platform support market participants to comply with the regulatory requirements and new rules on risk mitigation. As an International Central Securities Depository (ICSD), Clearstream is highly regulated and publicly discloses its risk management principles.

Philippe Seyll, Co-CEO and Head of Investment Fund Services at Clearstream Banking, said: "We are delighted to extend our relationship with Vontobel and to start delivering services to this customer in the Swiss market. Switzerland has a high importance for us and is considered as one of our key markets."