Euronext reveals fintech plan to automate fund flows

Euronext is rolling out an automated fund investment service in Paris for investors in Ucits and regulated alternative funds.

The firm said Euronext Fund Service, which combines technology created by fintech firms, would offer institutional and retail investors a simpified subscription/redemption facility to invest in funds through their brokers.

Several asset managers including Axa Investment Managers are lined up to use the service when it goes live on May 15.

Asset managers will be able to boost their funds’ visibility, Euronext said, adding that it fitted the needs of millennials and would facilitate access to both domestic and international investors.

Clients will be able to place orders for a range of international open-end funds domiciled in or passported into France through their broker.

New technologies developed by fintech companies, in particular robo-advisors seeking automated infrastructure solutions, provide the service’s technical foundations.

A partnership with Morningstar will also allow free access to a repository of fund data for selection and comparison on the Euronext website.

Fund agents registered with Euronext are BNP Paribas Securities Services, Cacies, CM-CIC Market Solutions and Societe Generale Securities Services.

Stephane Boujnah, chairman and CEO of the managing board of Euronext NV, said asset managers of all sizes will be able to use the service.

As well as Axa, Ecofi Investissements, Natixis Asset Management and OFI Asset Management will be initial users. Others including Commerzbank and La Française Investment Solutions will join in the weeks following its launch.

France has taken steps to boost its funds and fintech industries in recent months, including trying to attract fintech firms from London.

Last week BNP Paribas Securities Services also announced it was working with Axa Investment Managers on a fintech fund distribution platform in Paris.

©2017 funds europe

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