Euroclear embarks on fintech partnership for automated asset allocation
15 June 2017 Brussels
Image: Shutterstock
Euroclear has partnered up with UK-based financial technology company Quantessence, to provide an automated platform for running asset allocation algorithms.
Quantessence’s open-architecture platform manages predefined asset allocation algorithms.
The first application through the new partnership will service individualised constant proportion portfolio insurance (iCPPI) products, providing a risk management strategy that runs pre-agreed algorithms, protecting the capital in a fund portfolio.
According to Euroclear, the pairing meets demand for lower capital costs and improved robustness and trust in a growing market of automated processing.
Jo Van de Velde, global head of product management and innovation at Euroclear, said: “Today, we already automate the selection and movement of over €1 trillion of fixed-income securities and equities for collateral management purposes through our tri-party platform.”
“With Euroclear Quantessence, we will extend our scope of automated selection and movement to the funds industry. It is part of our innovation strategy to explore and develop new opportunities and technologies and to bring together financial market infrastructure solutions that truly add value to market players.’’
Peter De Clercq, CEO of Quantessence, added: ‘’Quantessence is proud to join forces with Euroclear, a company with a proven track record and solid reputation of providing a robust and resilient market infrastructure.”
“As a neutral, multi-party, state-of-the-art platform, Euroclear Quantessence intends to provide market access to all participants and to add real value to the iCPPI market.’’
Quantessence’s open-architecture platform manages predefined asset allocation algorithms.
The first application through the new partnership will service individualised constant proportion portfolio insurance (iCPPI) products, providing a risk management strategy that runs pre-agreed algorithms, protecting the capital in a fund portfolio.
According to Euroclear, the pairing meets demand for lower capital costs and improved robustness and trust in a growing market of automated processing.
Jo Van de Velde, global head of product management and innovation at Euroclear, said: “Today, we already automate the selection and movement of over €1 trillion of fixed-income securities and equities for collateral management purposes through our tri-party platform.”
“With Euroclear Quantessence, we will extend our scope of automated selection and movement to the funds industry. It is part of our innovation strategy to explore and develop new opportunities and technologies and to bring together financial market infrastructure solutions that truly add value to market players.’’
Peter De Clercq, CEO of Quantessence, added: ‘’Quantessence is proud to join forces with Euroclear, a company with a proven track record and solid reputation of providing a robust and resilient market infrastructure.”
“As a neutral, multi-party, state-of-the-art platform, Euroclear Quantessence intends to provide market access to all participants and to add real value to the iCPPI market.’’
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