Calastone begins processing electronic trades in Australia
Calastone, which provides a transaction network for fund trading and settlement, has moved beyond its core European markets to start offering services in Australia.
Calastone offers an electronic ‘hub’ which enables fund managers to connect regardless of their own in-house technology. The hub can be used by platforms, custodians and fund managers.
Kevin Lee, joint founder of Calastone, said: “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. 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.”
RBC Dexia and Aberdeen Asset Management are examples of globally present asset managers that have started using the technology for the Australian market. Calastone said it is going through a pilot with one of Australia’s biggest wrap platform providers.
“Participants have enjoyed a reduction in cycle time by around a third as a direct result of this mechanism. Trades are confirmed between counterparties within 5-10 minutes, as opposed to 1-3 days using the current fax-based system,” Lee said.