Bristol-based financial services provider Hargreaves Lansdown has announced that it is now outsourcing its fund settlement process to funds transaction network Calastone Settlements.
Calastone Settlements is a settlement system specifically designed for the funds industry, it aims to automate the reconciliation and settlement process of investment funds.
Danny Cox, head of Communications at Hargreaves Lansdown said, “Automatic matching of trades and the netting of settlement positions early in the day will improve the efficiency of our operational and treasury teams. Given the number of transactions that Hargreaves Lansdown processes this is of huge benefit.”
Analysing 2015 Calastone Investment Management Trading data between fund managers and distributors, Calastone claims that benefits from an automated settlement process could result in an up to 52% reduction of settlement payments. The group also estimates that in 2015, £158bn of settlement payments took place needlessly.