European Fund Administration (EFA) inks contract with CETRELSecurities UCITSCheck’s

CETRELSecurities, a specialist in providing ASP services to financial institutions […]

June 8, 2010

CETRELSecurities, a specialist in providing ASP services to financial institutions with more than 20 active clients using the service announced today that European Fund Administration (EFA Luxembourg) will now use its UCITSCheck solution.

Being a regulated company controlled by the Luxembourg Financial Markets Authority, CETRELSecurities, a subsidiary of the Luxembourg based Cetrel S.A., focuses on the provision of outsourced services in the area of pricing, reference data and corporate actions management to financial institutions. Since 2008, CETRELSecurities has put strong emphasis on added value services in the Compliance area.

Through CETRELSecurities’ UCITSCheck solution, Compliance departments of Asset Managers, Custodians or Fund Central Administrations are able to automate a process which is usually very manual: to analyse the eligibility status of instruments composing UCITS funds. Carlo Houblie, Executive Vice President of CETRELSecurities explains: “The UCITS directive provides rulings and guidelines for pre- and post trade checks to be done by UCITS compliant investment funds in relation with instruments acquired for the fund’s underlying assets. The aim of UCITS is to guarantee that the underlying portfolio constituents of a regulated fund are risk-transparent and liquid. CETRELSecurities has developed a specific set of rules mapping the UCITS eligibility assessment decision trees to an external data feed. The client generates an ad-hoc request originated by the trading or compliance environment, which is sent to CETRELSecurities who, in return, will calculate an eligibility flag to be sent to the Compliance system of the Customer.”

As per Olivier Gilson, Head of Fund Compliance, European Fund Administration (EFA): “The eligibility review of financial instruments operated in compliance with the legal requirements, involves the acquisition and maintenance of very large quantities of data, while running complex decision trees and monitoring results in our risk management process. UCITSCheck enables us to meet our clients needs, offering a smooth and comprehensive solution.”

“We are extremely pleased to have EFA joining our growing number of UCITSCheck clients” concludes Renaud Oury, Executive Vice President of CETRELSecurities. “We are convinced that our expertise will help our client to increase the quality of the eligibility analysis and in the meantime increase the STP rate of a usually very manual process. “

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