Global fund services provider SEI has chosen Calastone to provide its order routing service for the UK business. The decision will introduce full automation into its operations for the first time as it moves away from inefficient manual processing and improve risk procedures.
Under the contract SEI, which manages or administers $495bn of assets globally across pooled and separately managed accounts, will move toward automated order processing for client transactions across its retail fund and strategic portfolios, benefiting from faster turnaround times for order confirmations and contract note issuance.
SEI and its client counterparties will be able to reduce processing time and benefit from a substantial reduction in operational risk thanks the new solution. Calastone’s order routing service allows all parties in the process - whether third party administrator, distributor or a platform user - to choose which messaging format they wish to communicate in. The order message is then routed and translated by Calastone into the preferred format (with FIX messaging most likely), as determined by SEI.
According to Andrea Hohlachoff, head of asset management solutions at SEI, the business is already witnessing the operational benefits of the new service, explaining that Calastone has given the firm the facility to process fund orders electronically with our clients for the first time. “We very much look forward to expanding the use of the order routing service and enabling more of our clients to benefit.”
In addition, SEI will now be able to follow each order through the entire lifecycle of the trade, using Calastone’s Execution Management System (EMS), a web-enabled graphic user interface (GUI) which allows users a real-time view of the transaction, aiding risk and regulatory oversight as well as the effectiveness of trades. The EMS also has the ability to flag any potential restrictions, which otherwise would have to be dealt with manually.