Euroclear is partnering with Quantessence, a UK-based financial technology company delivering an open architecture platform that manages the running of predefined asset allocation algorithms. The first application on the platform will offer a service for iCPPI products.
iCPPI is a risk management strategy that runs pre-agreed asset allocation algorithms to provide capital protection to an individual’s fund portfolio.
The service will connect distributors, asset managers and hedge providers (investment banks and re-insurers) on the Euroclear Quantessence platform to automate the running of these algorithms.
By combining Quantessence’s market expertise and Euroclear’s strength of running and managing market infrastructure solutions, this third-party infrastructure will answer the industry’s need for lower capital costs, robustness and trust, in the growing market of automated processing, including algo-asset allocation and robo-advice.
Jo Van de Velde (pictured), Global Head of Product Management and Innovation at Euroclear, says: ‘’We are delighted to welcome Quantessence into the Euroclear group. Today, we already automate the selection and movement of over EUR 1 trillion of fixed income securities and equities for collateral management purposes through our triparty platform. With Euroclear Quantessence, we will extend our scope of automated selection and movement to the funds industry. It is part of our innovation strategy to explore and develop new opportunities and technologies and to bring together financial market infrastructure solutions that truly add value to market players.’’
Peter De Clercq, Chief Executive Officer at Quantessence, adds: ‘’Quantessence is proud to join forces with Euroclear, a company with a proven track record and solid reputation of providing a robust and resilient market infrastructure. As a neutral, multi-party, state-of-the-art platform, Euroclear Quantessence intends to provide market access to all participants and to add real value to the iCPPI market.’’
