EMX Company Ltd, owners of the EMX Message System, has made significant reductions to its tariff for product providers effective from 1 June 2008.
“We have always made it very clear that we aim to drive down fund-transaction costs through automation and to reduce our tariff as volumes grow. We restated this ambition when we became part of the Euroclear group in January 2007, and are now in a strong position to return the economies of scale to our clients,” says Max Wright, CEO, EMXCo.
In practical terms, product provider clients receiving over 10,000 order messages each year will enjoy savings of around 15%. These savings increase with scale so that product providers receiving over 100,000 order messages each year will see savings of around 24%.
“Longer term, we plan to continue to grow our client base and encourage existing clients to benefit from the new tariff by increasing their use of the EMX Message System. We constantly monitor our pricing and are optimistic that as volumes continue to grow we will have further scope for reductions. The recently announced plan to launch an automated settlement service for institutional investors with Euroclear UK & Ireland, with the first phase, Cash Settlement for Funds, in summer 2008 and Cash PLUS functionality in 2009, is expected to make the processing of fund transactions more efficient and less costly. We believe this will increase the attraction of investment funds as an asset class and help to broaden its share of the investment market,” adds Wright.