Euroclear said that the new service will enable fund management firms, fund distributors and transfer agents in Sweden to benefit from automated fund-transaction order routing between relevant parties and settlement of the cash-related part of the transaction on a straight-through processing basis.
Euroclear Sweden’s fund service will be extended to include automated fund-unit settlement and asset servicing by mid-2011.
In subsequent phases, fund investors will also be able to hold their fund units in the same Euroclear Sweden account where they already hold their equity and fixed-income positions.
Euroclear Sweden also said it aims to provide registry services for fund management companies.
Euroclear Sweden head of product management Anders Lofgren said the consolidated and comprehensive fund service that Euroclear Sweden will offer is filling a gap in transaction processing that should cut client processing costs, compared with conventional manual processing procedures.
"We also intend to leverage Euroclear Bank’s cross-border FundSettle service in providing Swedish firms with access to over 50,000 foreign funds and trading counterparties from over 30 markets via Euroclear Sweden," Lofgren said.
