Published On: Sun, Mar 3rd, 2013

NAB Asset Servicing connects to Calastone

Ben Heap Head UBS Global Asset Management Australia & New Zealand

Ben Heap Head UBS Global Asset Management Australia & New Zealand

Calastone, the global fund transaction network for the managed fund industry, now has more than 40% of Australia’s fund managers available for transacting over its electronic network, as NAB Asset Servicing (NAS) goes live.

NAS is Australia’s largest asset servicing company. Calastone Managing Director – Australia, Shannon Sweeney, said its connection to the network meant the critical mass of the Australian funds industry was now capable of transacting electronically.

“This is an incredible advancement for the Australian industry, which just 12 months ago was completing these transactions exclusively by fax,” she said. “Calastone has overseen the automation of markets all around the world, and Australia has shown remarkable enthusiasm to adapt to this new way of doing business.”

The first funds to go live through NAS were Ausbil Dexia Limited and UBS.

Ben Heap, Head of UBS Global Asset Management Australasia, said the global fund manager has been using Calastone in Europe for some time and is pleased that this electronic transacting capability has extended to Australia.

“Our priority is to ensure our fund management customers have the best, most efficient systems supporting their investments,” he said. “Australia is an important market for our investors and the efficiencies that automation brings to our funds is a great benefit to them, and us.”

Calastone has reduced the average time taken to confirm a fund transaction from up to three days to just five minutes, for participating funds. The technology is free to order senders – funds pay a fee-for-service based on the number of transactions they carry out.

Mark Reilly, Ausbil Dexia Limited’s Chief Operating Officer said “Going ‘live’ on the Calastone Global Fund Transaction Network has already moved some client orders from a fax-based communication process into the 21st century. We anticipate a significant client transition to this instruction format in the very near future and look forward to them receiving almost contemporaneous confirmation of their transactions having been accepted and processed by our custodian. In our opinion, this development will provide greater certainty for every participant in, as well as stripping operational risk out of, the trade process”

Calastone clients (the order senders – platforms, custodians and brokers) send their orders over the Calastone Network in the format of their choice. Calastone’s system then converts the order into the format of the provider’s choice (the order receiver, fund manager or registry), and forwards the order to the relevant provider. Confirmations are sent back through the network in the same way. Clients can see status of all orders at all times via the Calastone Execution Management System (EMS) – something that has never been possible before. Users have instant visibility of any issues or orders needing attention, further reducing risk.

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