Clearstream is expanding its offering in the funds space by acquiring Swisscanto Funds Centre, London (SFCL), from Zürcher Kantonalbank. The transaction, for a high double-digit million euro amount, is expected to close within Q3 2018. SFCL operates ZKB’s Swisscanto Fund Desk, which offers banks a centralized fund trading service – with straightforward order placement and execution, plus custody services. In addition, as part of the trading and execution services provided by ZKB, SFCL manages fund sales commissions on behalf of client banks, compiling the relevant data.
The deal allows Clearstream to expand its services in the funds space with management of distribution contracts and data processing. Clearstream will focus on extending the services offered by SFCL today and providing these services also to its international customers. By adding SFCL to its portfolio, Clearstream expects revenues in the low double-digit million euro area as well as cross-selling synergies to materialize.