Clearstream Chooses ITESOFT to Capture Client Transaction Orders Electronically

15 August 2007

ITESOFT, the market’s leading developer of electronic capture and automatic document processing solutions, has announced that Clearstream, subsidiary of Deutsche Börse Group, has chosen ITESOFT.FreeMind for Business and ITESOFT.Share solutions to capture and automatically process client investment fund transactions.

Based in Luxembourg, Clearstream is an International Central Securities Depository (ICSD) and a leading supplier of post-trading services (custody and settlement) for the financial industry. Leveraging a global network that links 42 domestic markets, Clearstream offers one of the market’s most comprehensive international securities services available, settling more than 250,000 financial transactions daily, with around 2,500 customers (banks and financial institutions only) in over 100 countries.

In early 2004, Clearstream embarked on a vast project to automate its process for order routing. The project was part of the company’s ongoing strategy to reduce costs and improve processing efficiency in the investment fund industry which, unlike bonds and stocks, is still very much paper-based. A global automation system, called Vestima+, was launched in January 2005.

“At that time, Vestima+ was not able to handle client order confirmations sent by fax. However, a high number of transactions in the investment industry are carried out by fax or telephone. Our Vestima+ product needed an automated solution to fill in this major gap and integrate into the overall existing full “Straight Through Processing” system.This solution was to allow us to offer to our clients an easy entry and simple upgrade path towards more structured communications while maintaining reasonable STP levels,” recalls Christian Westerholt, Clearstream Product Manager.

After publishing a request for bid, Clearstream wanted to test solutions in a real world proof-of-concept over a period of 3 days at the Clearstream site. This selection method was designed to compare the various short-listed offers with respect to a set of criteria that included performance, ease-of-use, and interface efficiency with Vestima+. ITESOFT’s solutions were chosen following proof-of-concept testing that focused on operational security and ease-of-use.

“There was no possible doubt as to which was the most appropriate solution: ITESOFT’s superiority was beyond compare,” says Christian Westerholt. “One of the main differentiating factors in ITESOFT.FreeMind for Business and ITESOFT.Share is their ability to read not just pre-defined document formats, but also to handle completely unstructured documents,” he adds.

The proof-of-concept testing also enabled Clearstream to see that no prior setup was required, which made it faster to implement the project, and easier for end-users to learn how to use the solution.

“The ITESOFT solution also stands out for its high level of security. This includes backup features, access rights management, and detailed tracking throughout the entire cycle. We now have an automation tool that meets our security requirements perfectly,” concludes Christian Westerholt.

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