Calastone has begun processing electronic trades of managed funds for Australian client as of this month and will launch its net settlement system in mid-2012.
Joint founder Kevin Lee has moved to Sydney from London and said companys offering had been received with enthusiasm.
The industrys appetite for the use of Calastones service has grown rapidly due to a number of beneficial factors, including time-to-market and outstanding levels of production service, Lee said. Almost every provider in the UK and Europe uses Calastone, and we expect the Australian market will embrace this new technology together with the savings and transparency it brings.
One of Australias top three wrap platform providers is participating on Calastone under a pilot arrangement, Lee said.
Participants have enjoyed a reduction in cycle time by around a third as a direct result of this mechanism, Lee said. Trades are confirmed between counterparties within 5-10 minutes, as opposed to 1-3 days using the current fax-based system.
Calastone offers a full funds service from account opening through to settlement. The firm is independent and provides its services via a fee-for-service model.