Clearstream has partnered with alternatives FinTech firm Finomial to automate the trade documentation process for funds, with the aim to enhance investor transparency.
The Luxembourg-based CSD will use Finomial’s client lifecycle management technology to automate trade documentation completion for funds in alternative assets, including hedge funds and private equity.
According to the firm, Clearstream places trades with over 40,000 hedge funds across 45 jurisdictions globally. It said from the end of 2020, Clearstream’s clients will benefit from fully automated trade documentation completion, a client interface to automate collection and provision of individual customer declarations, reducing risk and delivering greater investor transparency.
“The alternative investments industry has been marked by highly individualised, cumbersome and manual processes. State-of-the-art technology can help change that. With Finomial we found a perfect provider to make processes more efficient for our clients,” said Philippe Seyll, head of investment fund services and CEO of Clearstream Banking S.A.
Finomial’s platform drives efficiency and transparency in what has historically been a labour-intensive, paper-based process required for investing in alternatives.
“Due to Clearstream’s scale in the industry, Finomial’s technology will help automate hedge fund subscriptions and private equity capital commitments for over 1.5 trillion euros in assets of the 10 trillion alternatives market,” said Meredith Moss, CEO, Finomial. “As Clearstream continues to gain market share, we are excited to support them to further automate private funds investing.”
Clearstream has increasingly turned to the FinTech community to enhance its investment fund services business. In March, it teamed up with Credit Suisse Asset Management, Natixis Asset Management and the Luxembourg Stock Exchange to launch FundsDLT, a decentralised technology platform for the distribution of funds.