TECHNOLOGY

Aberdeen Standard Investments unit goes live with Calastone

Standard Life Investments seeks liquidity savings from netting process.

By Richard Schwartz editors@globalcustodian.com November 24, 2017 1:39 PM GMT

Calastone, the global fund transaction network, has announced the successful onboarding of Standard Life Investments (SLI) to its automated funds settlement solution.

Calastone Settlements, designed specifically for the funds industry, automatically matches trades and calculates the net settlement position between each trading counterparty.

“We recognise that further efficiencies can be realised by taking advantage of this automated net settlement solution, which has already been deployed in other parts of our organisation,” said Mike Tumilty, director of operations at Aberdeen Standard Investments.

Prior to Aberdeen Asset Management’s £11 billion merger with Standard Life, Aberdeen Unit Trust Managers Limited (AUTM) was already live on Calastone’s settlement service.

“We’re thrilled to welcome Standard Life Investments onto our settlements solution,” said Jon Willis, chief commercial officer at Calastone.

“Reducing the frictional cost of trading mutual funds and lowering the total cost of ownership is becoming more important as the funds world develops and expands.” Willis added that automated matching and netting of trades plays a key role in allowing clients to improve operational efficiency.

According to 2016 trading data from Calastone, the inherent netting facility can generate reductions in settlement payments of up to 58% between fund managers and distributors.