Cross-Border Distribution of UCITS

A CACEIS PRODUCT DEVELOPMENT PUBLICATION - 2011

CHALLENGES & OPPORTUNITIES

cess to the whole of the global funds market through a single connection. Mutual fund dealing volumes carried on the Calastone transaction network have risen by 8.9% compound every month since November 2009 and continue to do so. Calastone currently work with major asset servicing players to boost investment fund automation in Asia. NSCC 46 DTCC’s subsidiary, National Securities Clearing Corporation (NSCC), was established in 1976 and is regulated by the US Securities and Exchange Commission (SEC). It provides clearing, settlement, risk management, central counterparty services and a guarantee of completion for certain transactions for virtually all broker-to-broker trades involving equities, corporate and municipal debt, American depositary receipts, exchange-traded funds, and unit investment trusts. Today NSCC completes over 190 million annual transactions. In the United States, more than 95% of mutual fund transactions transit through the NSCC plat- form. NSCC is also opened to the distributors based in Latin America. As a consequence, being connected to this platform is crucial for any European asset manager wishing to market its funds in America. Prime TA ® Operational since 2002 and dedicated to management companies, Prime TA® is CACEIS’ hub platform, based on full transfer agency services and capable of capturing transactions re- ceived from distributors using various means of communication, routing transactions to the official transfer agent of the target fund and performing the settlement as the case may be. This central platform acts as a single access point between distributors and transfer agents for both order processing and settlement, thereby streamlining the entire transaction process. CACEIS offers two distinct services: The “routing service” designed for distributors who settle through clearing platforms and the “nominee service” for those who do not use any clearing platform. In 2010, nearly 270,000 transactions were processed. CACEIS Prime TA® has direct contacts with more than 1,000 distributors. Vestima + and CFF (Clearstream) 47 Euroclear’s main competitor, Clearstream, has taken a more segregated approach, offering separate systems to deal with order routing and settlement. The Vestima+ system, launched in 2005, is an automated order-routing service that offers a single point of access to order issuers for in-house domestic, third-party, cross-border and off- shore funds. Today it allows access to more than 80,000 funds and handles the whole pre-trade process from order through to execution. In 2007, Clearstream launched the Central Facility for Funds (CFF) as a settlement service to complement Vestima+. CFF offers Delivery Versus Payment (DVP) settlement services for the simultaneous exchange of cash and securities between fund distributors and transfer agents, operating as a central platform. In addition, VestimaLINK 48 , a new service designed to help Asian-based fund distributors ben- efit from a more efficient infrastructure to deal in European investment funds, was created by

Notice

CACEIS can help you streamline the entire

transaction process when distributing internationally through its Prime TA® - Order gateway & Mirroring services.

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46 Source : NSCC, About DTCC / NSCC (www.dtcc.com), 2011 47 Source : Clearstream, Investment fund services product information (www.clearstream.com), 2011 48 Source: Asia Asset Management, “Clearstream launches new service for Asian investment fund distributors”, 13 February 2009

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