APCIMS welcomes Euroclear acquisition of EMX

11 December 2006

Today’s announcement that Euroclear, the CREST settlement service operator, has acquired automated funds processor EMXCo., is welcome news for APCIMS members. The acquisition brings together the UK’s leading equities and funds settlement processing engines under one roof.

APCIMS Chairman John Hall explains:

“At present, firms wishing to use CREST and EMX automated settlement processing must maintain two separate electronic communications links, and must manage the information to and from the two sources. The acquisition of EMX will streamline this processing, as in future only one connection will be required when the systems are amalgamated.”

The issue of manual funds reconciliation has been a real problem for APCIMS members for many years.

Guy Sears comments:

“For some years one of the biggest issues for APCIMS members has been the reconciliation of unit trust positions, which is generally regarded as a costly, time consuming and highly labour-intensive activity.

Whilst EMX has been making great strides in improving and automating the settlement and reconciliation, and many of our firms are members of it, EMX and CREST together should accelerate this process, which is likely to lead to an improved service and potential cost savings for our members.”

APCIMS estimates that its member firms hold as much as 20% of funds under management in unit trusts and other collectives.

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