AP Pension Selects Calastone for Order Routing Services

Denmark-based AP Pension has chosen Calastone, a funds transaction network, to provide order routing services that will underpin its administrative platform for cross-border trading.

AP Pension administers assets from approximately 2,000 corporate pension schemes. Calastone enabled AP Pension to obtain full visibility of the life cycle of the order, and to reduce market risk. Once connected to the service, distributors receive access to all available fund providers on the Calastone network.

Calastone also allows all parties to use one line of communication, by translating the message into a particular form, which will be determined by AP Pension.

“Smaller distributors, such as AP Pension, traditionally chose to remain on manual processing as they believed the implementation costs far outweighed the benefits of finding an STP order routing solution. This is no longer the case,” says Jon Willis, chief commercial officer at Calastone.

“[Fund managers] choose to ’upload’ consolidated orders or, for single trades, use the ‘direct order entry’ option. The latter is becoming increasingly popular where clients have a small number of trades and have previously used a manual process of emailing or faxing the orders,” adds Willis.