Deutsche Börse-owned Clearstream, which provides post-trading services, has established a new banking institution in Luxembourg for serving institutional fund investors. Dubbed Clearstream Fund Centre S.A., the banking entity operates with a commercial banking license from Luxembourg.
A New Banking Entity of Clearstream
"It is at the heart of Clearstream's mission to support the wealth management and banking community with best-in-class execution services, efficient distribution management, state-of-the-art technology, and data solutions," said Philippe Seyll, the CEO of Clearstream Fund Centre S.A.
The official announcement on Wednesday detailed that the newly created lender will serve Clearstream's fund execution business, Vestima, which is lauded as the world's largest fund-processing platform with access to more than 230,000 funds in over 50 markets. Now, it holds a commercial banking license through the new banking platform.
Additionally, the banking institution will support the fund distribution platform Fund Center, which connects international asset managers and fund houses with distribution partners, providing access to over 72,000 funds.
Clearstream Fund Centre S.A. was the strategic business expansion of Deutsche Börse's and Clearstream's Fund Services. This business segment offers fund execution, distribution, and data management. Moreover, the new lending entity is regulated under MiFID, which is mandatory in Europe, to support clients and thus maintains the highest regulatory fund requirements.
"The creation of Clearstream Fund Centre S.A. is a strong testimonial to our client dedication as well as to Luxembourg as our home and important financial center," Seyll added.
Expansion Continues
Last month, Clearstream unveiled the Collateral Mapper, a data-driven solution designed to optimize collateral management. It provides clients with an automated, comprehensive view of their collateral positions, enabling well-informed decision-making.
Clearstream launched its own collateral management tool in June 2022 with the collaboration of Intelli-Select, a Brussels-based fintech company. The Own Selection Criteria with Automated Reasoning, or OSCAR, is the market's premier collateral management solution, distinctively integrating multiple artificial intelligence methodologies.
Deutsche Börse completed its full acquisition of Clearstream in 2021. The investment was beneficial as Clearstream helped boost the group's net income, which jumped 24 percent in 2022 to €1.6 billion. On top of that, Deutsche Börse reported net revenue of €4.34 billion and an EBITDA of €2.52 billion, as both figures increased significantly.
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