With BNP Paribas Securities Services serving as the custodian, clients like M&G Investments can electronically route orders for UK investment funds, automate fund unit settlement for subscriptions and redemptions, link cash movements derived from units bought and sold.
Further, it also caters settlement of stock and cash balances on a real-time basis, distributes and receives corporate action proceeds and where applicable, offers hassle free re-registrations and transfers of client portfolios.
Euroclear UK & Ireland CEO John Trundle said that the launch of services through IFDS will offer a single point of access for all investment fund transaction needs.
"As the UK and Ireland’s central securities depository, we are the provider of proven, automated, highly secure and reliable services for the institutional and retail markets," Trundlec added.
Using new services, cash and fund units are exchanged electronically and simultaneously, and its complete processing automation prevents human processing errors.
It also reduces operational costs and counterparty risks for the investment houses and slashes the trade-to-settlement cycles by up to 60%.
Supporting 40 financial organizations and managing assets worth more than GBP477bn (€560bn), IFDS operates as a 50/50 joint venture (JV) of affiliates of Boston-based State Street Corporation, and DST Systems.
