Automation of order routing within funds between the Nordic countries and central European fund markets has been a strategic goal at VPS for quite some time. And with the new agreement in place, Clearstream and VPS have agreed to act as preferred mutual partners in this area.
The agreement opens up for easier access to Clearstream’s more than 150,000 mutual funds for the Nordic distributors, as well as easier trading in Nordic mutual funds for the European distributors. Initially, the service will be provided on a Nordic basis, but VPS is also working with Clearstream to facilitate Nordic distributors’ order routing in European mutual funds on Clearstream’s platform via VPS. Vice versa, European distributors can route orders in the Nordic mutual funds through VPS.
VPS is currently offering services for order routings between distributors who are account operators registered with VPS and fund management companies managing VPS-registered mutual funds. In order to be an efficient partner for our customers, we are now extending the offer to include distributors and fund management companies that have not registered their shareholders with VPS. This means that fund distributors that are linked to VPS can submit orders for both VPS-registered mutual funds as well as external mutual funds that have entered into an agreement with VPS. Orders for the external mutual funds are forwarded to the correct fund management company, while the VPS-registered mutual funds are processed at VPS Fund Services.
