Clearstream selects Finomial to automate trade documentation for alternative investments

By Megha Bhattacharya

Deutsche Börse Group’s post-trading services provider, Clearstream said this week that it has selected US-based Finomial’s client lifecycle management technology in a bid to automate trade documentation for alternative investments such as hedge funds and private equity.

The partnership will enable Clearstream’s users to take advantage of the fully automated trade documentation completion. The client interface will automate collection, provision of individual customer declarations, reduce risk and aim to deliver 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.

Clearstream provides the post-trade infrastructure for the Eurobond market and services for securities from 58 domestic markets globally. It delivers investment fund solutions built on asset safety and distribution efficiency and offers customers direct access to local domiciled funds in 48 fund jurisdictions worldwide.

“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.”

Finomial automates client on-boarding, comprehensive due diligence, and global regulatory reporting. It aims to transform the buy-side investment process by automating the manual hedge fund subscription process between investor, fund manager and administrator.