Euroclear UK & Ireland (EUI) and International Financial Data Services (IFDS) have said that IFDS, a transfer agency service provider, will use EUI to process its clients' investment fund transactions.

This agreement, will enable the IFDS fund management community of users to benefit from EUI’s fully automated services for the settlement of fund units and applicable cash movements.

Euroclear UK & Ireland CEO Yannic Weber said EUI is delighted to be working with IFDS and extend an industry-designed solution for funds processing to their clients.

"Thanks to the great deal of support from the distribution community, coupled with the strong representation of IFDS clients in the UK market, we believe this is evidence of a solid value proposition. The system we have developed provides counterparties with the certainty they need regarding movement of not just the cash on intended settlement date, but also that the fund unit positions are updated in the register in parallel," Weber said.

IFDS chief administration officer Matthew Brown said IFDS supports initiatives that automate and standardise processes that help to lower cost and risk. IFDS is pleased to be working with Euroclear UK & Ireland in this regard, helping users to settle fund transactions using an automated solution.