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Clearstream opens office in Cork to boost hedge fund processing business

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Clearstream is opening its new office in Cork, Ireland this week, following the company’s acquisition of Citco’s hedge fund sub-custody business for financial institutions in April 2014.

The business transition took place on 5 October 2014 with the integration of 300 former employees of Citco Global Securities Services (CGSS) Ltd in Cork into Clearstream’s Investment Fund Services division. The ownership of the Citco IT systems and software for hedge fund processing has also been transferred to Clearstream.
 
The new Cork-based entity, Clearstream Global Securities Services Ltd, is a 100 per cent subsidiary of Clearstream International SA in Luxembourg and will continue to use its acronym CGSS. The new entity is now Clearstream’s largest operational centre for investment funds and complements the already existing mutual fund servicing centres in Luxembourg, Prague and Singapore.
 
The acquisition strengthens Clearstream’s presence in Ireland, where it had first opened an office in Dublin in 2012 to extend its investment fund offering to cover hedge funds. As the strong customer demand for processing large hedge fund portfolios could not be accommodated in a timely and efficient manner by growing its small Dublin branch organically, Clearstream acquired CGSS in Cork. The Dublin office has also been relocated to Cork.
 
CGSS provides hedge fund custodian services for 60 major financial institutions with positions in over 25,000 hedge funds. This additional business alongside the existing highly automated mutual fund services at Clearstream provides clients with the perfect ‘one-stop shop’ solution for all fund types.
 
Philippe Seyll, member of the executive board and head of investment fund services at Clearstream, says: “The large manpower we now have in Cork gives Clearstream greater credibility in the hedge fund space and will allow us to attract much larger hedge fund portfolios. This new hedge fund processing capacity has already attracted significant interest among key players in the market and we expect a solid growth of about 20 percent in revenues by the end of 2015. The combination of the expertise in hedge fund operations of CGSS combined with our operational excellence in mutual funds will take our global fund processing platform Vestima to the next level.”
 
Sean O’Donovan, managing director of CGSS Ltd, adds: “The integration into Clearstream is definitely a fantastic step for CGSS – the intention is to further grow our hedge fund processing business. All existing CGSS customers have opted to stay on board and we have received significant interest from prospects. This is the beginning of a journey in which CGSS will contribute to ensuring Clearstream’s Vestima fund processing platform remains the leading international fund market infrastructure.” 

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