Euroclear UK & Ireland slashes fund transaction reconciliation fees

London, (PresseBox) - Euroclear UK & Ireland's charges to fund promoters for processing reconciliation messages emanating from the fund distributor community have been lowered substantially, with immediate effect. Fund promoters that receive fund distributor data requests concerning fund unit balances for reconciliation purposes (known as reconciliation messages) will be charged GBP 1.00 for the first 250 messages per month, and then only GBP 0.10 (10 pence) per message thereafter.

Ever since the EMX Message System was linked to the transactionprocessing system of Euroclear UK & Ireland, greater efficiencies in fund unit balance reconciliation have been made available to fund distributors.

Yannic Weber, Chief Executive Officer of Euroclear UK & Ireland, commented: "The rationale for Euroclear UK & Ireland lowering its tariff is directly linked to the increasing critical mass of fund-related transactions we process. By electronically reconciling through the EMX Message System, fund distributors are actively reducing their processing costs and risks."

Weber continued: "Reinforcing our competitive edge at the forefront of investment fund processing in the UK, our fee cut means that all of our top-bracket fund managers will save at least 50% in reconciliation costs compared to previously."

Gary O'Brien, Head of Client Services at Old Mutual, said: "We are delighted that Euroclear UK & Ireland are able to return the benefits of higher volumes to fund managers by a reduction in tariff of this size."

Euroclear UK & Ireland

Euroclear UK & Ireland offers real-time securities settlement for Irish, UK, Jersey, Isle of Man, Guernsey and international securities. Euroclear UK & Ireland is a wholly owned subsidiary of Euroclear SA/NV.

EMXCo was merged into Euroclear UK & Ireland in September 2010 after becoming part of the Euroclear group in 2007. The EMX Message System routed a record 37 million investment fund transaction messages in 2010, a 23% increase from the 30 million messages routed in 2009. In January 2011, the EMX Message System routed fund order flows representing over EUR 546 million per day, a 35% increase on the same period in 2010.

Euroclear provides domestic and cross-border settlement and related services for bond, equity, derivatives and fund transactions. User owned and user governed, the Euroclear group comprises Euroclear Bank, based in Brussels, as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. Euroclear also owns Xtrakter, operator of the TRAX trade matching and reporting system. Euroclear Bank is rated AA+ by Standard & Poor's and Fitch Ratings.

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