Independent fund platform Cofunds has signed up to the Calastone and Barclays managed fund settlement service.
Calastone launched a settlement service to standardize and improve settlement automation. It subsequently expanded the service through a partnership with Barclays to provide a complete managed net settlement service.
With Cofunds accounting for significant share of the UK platform market, the latest signing marks a significant point in Calastone and Barclays efforts to add market standardization and improved automation to the settlements function within the funds industry.
As well as reducing cash flow exposure, the fully managed fund settlement service will reduce counter party and liquidity risk across the market, providing full automation to the fund industry from point of trade through to settlement finality.
Stephen Mohan, managing director of Operational Services at Cofunds said: The integration of this product is the ideal step forward in helping us streamline and improve automation within our cash management sector. We are always looking at ways in which we can improve efficiencies and reduce risk and these benefits, along with the reduced cash flow exposure, are the main drivers for us signing up.
(JDC)