Calastone, the independent transaction network for the managed funds industry, today announced that investment and Superannuation platform provider netwealth had commenced transacting managed funds over the Calastone Transaction Network.
Calastone joint founder, Kevin Lee, said he was delighted to welcome netwealth on to the network.
“Since we launched in Australia in January we’ve been very pleased indeed with the enthusiasm the local market has shown for the benefits of automation,” he said. “Our international experience has shown very significant improvements in risk management and operational control, as well as reductions in processing costs. I believed strongly when I brought Calastone here that the Australian market was ready to embrace these opportunities, and indeed that is proving to be the case.”
Alistair Densley, General Manager, Operations for netwealth, said the firm saw automation of the managed fund transacting process as a logical step in the development of the business.
“As a group, we pride ourselves on being at the forefront of wealth management, whether that’s in investment opportunities or in better ways to manage the back office,” he said. “We’re very pleased to be showing industry leadership in being among the first to connect to Calastone in Australia, and look forward to the benefits that it will bring to our business and our clients.”
Mr Densley commented that connecting to Calastone had been easy for netwealth. “The process could not have been simpler - three weeks from start to finish”.
Calastone’s execution management system (EMS) enables buyers and sellers of managed funds to communicate orders electronically by providing a universal message communication and translation service – Calastone Transaction Network. It’s a single connection to the global funds market.
Calastone clients (the order senders - platforms) send their orders over the Calastone Transaction Network in the format of their choice. Calastone’s system then converts the order into the format of the provider’s choice (the order receiver), and forwards the order. Confirmations are sent back through the network in the same way. Clients can see status of all orders at all times – something that has never been possible before. Users have instant visibility of any issues or orders needing attention, further reducing risk.
Calastone plans to launch further services for managed funds in Australia later this year.