Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013
Kevin Lee, chief executive of Calastone

9289

Managed funds to be electronically traded in Australia, says Calastone

RELATED TOPICS​

Calastone, the independent transaction network for the managed funds industry, has begun processing electronic trades of managed funds for Australian clients.

Calastone, the established service provider in the UK and Europe, provides a unique messaging hub for the managed funds industry enabling organisations to electronically connect to each other irrespective of the chosen technology or messaging protocol in use.

Joint founder of Calastone, Kevin Lee (pictured), said the firm’s offering was revolutionising the way managed funds are traded in Australia.

Calastone’s service enables all fund participants, platforms, custodians and fund managers to significantly reduce costs and risk, while preserving their freedom to engage with their retail clients and each other as they choose.

Lee, who relocated to Sydney from London in July last year, said Calastone had been received with enthusiasm by local firms.

“The industry’s appetite for the use of Calastone’s service has grown rapidly due to a number of beneficial factors, including time-to-market and outstanding levels of production service,” says Lee. “Almost every provider in the UK and Europe uses Calastone, and we expect the Australian market will embrace this new technology together with the savings and transparency it brings.”

Early Australian adopter, RBC Dexia, has been utilising Calastone technology around the globe for many years.

“We have been at the forefront of the drive for automation in the Australian fund market in recent years and what Calastone provides is a substantial initiative, leading the industry towards that goal. It is an easy way to increase efficiency and dramatically reduce risk – benefits which will be passed on to our clients and ultimately the end investor,” says Shannon Sweeney, Product Manager for Fund Administration.

Brett Jollie, Managing Director of Aberdeen Asset Management, says: “We use Calastone in many parts of the world, it’s a specialist service designed for the primary managed fund market and it works. We are pleased our Australian business and our clients now have the opportunity to experience its benefits."

Another of Australia’s top three wrap platform providers is also participating on Calastone under a pilot arrangement.

“Participants have enjoyed a reduction in cycle time by around a third as a direct result of this mechanism,” Lee says. “Trades are confirmed between counterparties within 5-10 minutes, as opposed to 1-3 days using the current fax-based system.”

Calastone offers a full funds service from account opening through to settlement. The firm is independent and provides its services via a fee-for-service model that is inherently free of conflict.

“Our service is a business to business service designed for the funds market, which is a primary market, meaning units can only be bought and sold through the issuer,” Lee says. “This is very different from a secondary market, like equities. With Calastone, there is no need for fund providers to maintain a register of holdings on our system. Our experience internationally shows that replicating the register – in the way another proposed managed fund trading system is requiring for the Australian market – is inefficient, and adds layers of extra costs and risks that don’t need to be there.”
 

Latest News

The trading and investment platform eToro has extended its proxy voting feature to all stocks..
C8 Technologies, the London-based fintech founded by former BlueCrest Capital Management partners Mattias Eriksson and..
DWS has announced the latest development in its strategic growth push in Alternative Credit with..

Related Articles

Pension funds
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next decade, industry research reveals...
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next..
Tim Crawmer, Payden & Rygel
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also, given that equities had a strong year last year, big funds have taken some chips off the table in equities and put them into fixed income...
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also,..
Lady justice
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI) strategies received glowing commendations from the Bank of England in its March report...
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI)..
Pension funds
Four potential operators of pensions dashboards (Just Group, Legal & General, Moneyhub and Standard Life, part of Phoenix Group) are coming together to instigate a new industry coalition...
Four potential operators of pensions dashboards (Just Group, Legal & General, Moneyhub and Standard Life, part of Phoenix Group) are..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by