Cofunds, the investment platform for advisers and other financial institutions (FIs), has said that it is now linking to Euroclear’s EMX message system for asset managers and financial market participants, to improve electronic fund transaction order routing.
The link-up should help Cofunds to reach its target of 95% straight-through processing (STP) with the fund managers it interacts with.
The Cofunds platform is responsible for administering fund holdings worth over £50bn and offers clients the benefits of automation for the full fund transaction life-cycle. In addition to the current automated processes on offer, the fund platform’s clients can now route aggregated orders through the Cofunds link with Euroclear’s EMX Message System.
“The increased levels of processing efficiency that our co-operation with Euroclear UK & Ireland provides is common sense business move,” said Mark Hopcroft, head of institutional distribution at Cofunds. “In a world where stronger focus will be on providing capital market transparency, efficiency and cost control, it will be those fund management houses that have embraced proven channels for automated distribution that can expect to see their assets under management (AUMs) soar.
“What we are doing with Euroclear UK & Ireland echoes the commitments we made to clients last October - to remain focused on ensuring that everything we do enables clients to demonstrate value, drive efficiencies and increase the importance they play for end investors.”
The EMX message system is integrated within the post-trade infrastructure of Euroclear UK & Ireland where platform clients and other trade originators can choose from a comprehensive portfolio of order routing, settlement and custody services.
Fund orders from institutional firms, or independent professional advisers (IPAs) for retail market business, can be routed from fund platforms to Euroclear UK & Ireland’s EMX message system, which interfaces electronically with transfer agents and the fund managers they service.