Clearstream Opens Hedge Fund Processing Center In Dublin


Clearstream has established a branch in Dublin to extend its post-trade offering in the area of investment funds to hedge funds. Clearstream Banking S.A., Dublin Branch, will extend the company’s investment funds business to alternative funds and allow Clearstream to service the entire range of funds: mutual funds, exchange-traded funds and hedge funds. The hedge fund investor services were set up following a steep increase in client demand for such investments and will over time be fully integrated into Clearstream’s fund processing environment. The new venture has already signed six pilot customers. Christian Westerholt, previously Head of Product Development in Clearstream’s Investment Fund Services area, will be the General Manager of the Dublin branch.

Michael Noonan TD, Ireland’s Minister for Finance, said: “The Financial Services sector is a key driver of jobs in Ireland. I am delighted that Clearstream has taken the decision to establish an operation centre for servicing the investments into hedge funds in Dublin with the potential for more than 100 jobs. Ireland is a global hub for the funds industry and today’s announcement further enhances the range of services and companies located in Dublin. Once again the Industrial Development Agency, IDA Ireland, has done an excellent job in highlighting Ireland's attractiveness as a destination for investment from European companies. I would like to wish all at Clearstream every success.”

Jeffrey Tessler, CEO Clearstream, said: “The new Dublin base broadens our value proposition in the investment funds spaces adding to our established investment funds base in Luxembourg. The new specialised unit based in Dublin will provide the operational capabilities for hedge fund services to customers around the world. The talented pool of expertise and the proximity to the hedge fund industry have been the key drivers for our choice of Dublin. Our product range for investment funds will soon provide customers with a single, fully automated point of entry for routing orders to fund managers across all funds types.”

Philippe Seyll, Head of Investment Funds Services and Member of the Executive Board of Clearstream, said: “Hedge funds are highly complex and diverse instruments. Processing of hedge funds therefore requires a lot of manual effort which comes at significant operational risk and involves cost that are approximately 100 times higher than for other fund types. Our aim is to increase efficiency in the hedge funds processing space and to offer investors a superior value proposition at a better price. We also remain committed to further growing this business and creating new jobs in Ireland where we have now created 15 new positions.”

The move to Ireland follows a steep increase in customer demand for investments in alternative funds such as hedge funds. The recent rebound of investments into these instruments and the more diversified investor base have lead to an increased demand from customers for a consolidated service covering both automated and non automated funds. Clearstream has integrated such instruments into the existing process for mutual funds allowing customers to benefit from a high level of standardisation and features such as automated order routing, settlement and position reporting. Dublin has been chosen to locate the new service because it is one of the leading global centres for hedge fund administration.