The initiative will allow users of PortfolioServerâs TrustArchitect registry solution to interface directly to Ausmaqâs trading hub, eliminating the need to re-key orders and manually issue confirmations.
Rob Brown, Ausmaqâs Chief Executive Officer said âThe efficiency benefits are significant, along with the risk reduction that comes from eliminating re-keying. More importantly, this initiative shows that enlightened players can do something practical about historic inefficiencies in the managed fund world.â
Echoing this sentiment, Chris Bain, a PortfolioServer Director, indicated that there was real support from the market for practical solutions. He commented âWe believe that the key to efficiency in the market is the use of contemporary technology. This means web based interaction. The initiative with Ausmaq has shown that improvement can be achieved at low cost â which means we can offer solutions at a very attractive price to customers of Trust Architect.â
The initiative is not a joint venture or formal agreement. Brown explains âThis was an opportunity to implement a practical solution that benefits all parties in the value chain. It adopts the industry standard for electronic messaging, and therefore encourages open architecture.â
Ausmaq anticipates that there will be a significant increase in volumes in electronic trading over the coming twelve months. This initiative should provide additional opportunities for lower costs and less manual processing.
âWe expect a material increase in the take up of electronic orders for managed fund applications and redemptions from custodians and platforms â the wholesale end of the industry. These firms expect to achieve the same level of efficiency that they get from traded markets, such as direct equities. Ausmaq has electronic connection to a very good cross-section of the market already in place with some 23 leading managers currently using mainHub. This initiative with PortfolioServer shows how the last link in the chain can also be automatedâ says Brown.