Swift/Efama report points to increase in fund processing standardisation

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Swift, the network linking banks and other financial institutions, and Efama, the European Fund and Asset Management Association, have published a joint report suggesting that there has been progress in implementing increasing levels of automation and standardisation in the area of fund order processing.

The volume of automated processed orders rose by 2.5% to 12.2 million in the first have of 2014 compared to the same period last year. The use of ISO standards in processing orders also rose to hit 50% in the second quarter of 2014, the organisations said.

Both Swift and Efama have pushed for greater levels of standardisation as a means to encourage and support the development of cross border funds.

They say that the latest results are based on survey responses from businesses representing 80% of total incoming third party fund order volumes in both Ireland and Luxembourg.

Other key findings include:

  • The total automation rate of processed orders of cross-border funds reached 78.2% in the second quarter of 2014, compared to 78.7% in the fourth quarter of 2013. However, the use of ISO messaging standards rose by 4.7%, reflecting a fall in the use of proprietary FTP formats by 5.2% over the same period.
  • The use of ISO messaging standards increase to 59.6% during Q2 2014 in Luxembourg compared to 57.7% in Q4 2013. The use of proprietary FTP decreased to 16.5% in Q2 2014, from 17.6% in Q4 2013.
  • The percentage of automated orders based on the ISO messaging standards increased to 27.5% in Q2 2014 in Ireland, compared to 20.9% in Q4 2013. The use of FTP decreased to 55.7% in Q2 2014, from 64.7% in Q4 2013.

Peter De Proft, Efama director general (pictured) said: “We welcome the fact that the use of ISO messaging standards in the processing of fund orders of cross-border funds in Luxembourg and Ireland has reached the 50% threshold for the first time. This is an important contribution to the objective of strengthening efficiency in fund-back office activities for the ultimate benefit of end investors.”

 

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