Nasdaq OMX is to launch a new Nordic Fund Market (NFM) to provide an electronic alternative to manage the transactions between fund distributors and fund management companies.
The new platform will aim to displace the manual fax-based mechanisms which currently predominate in the investment fund distribution arena.
The platform is built upon new messaging standards such as ISO 20022 and adapted to EFAMA's Fund Processing Passport standard to enable connectivity between the fund distributors' back-office system with the NFM order management system and the fund companies' central registry system.
The transatlantic exchange operator says NFM will launch in Sweden at the end of April this year - with funds from Fidelity International available at the outset - with the goal to eventually roll out the offering in all Nordic countries.
Erik Thedéen, president at Nasdaq OMX Stockholm comments: "As the number of fund transactions continues to grow there should also be an infrastructure in place that can accommodate this increase in demand. Through NFM we are offering an electronic platform that will raise the general security in the system and enable efficiency and transparency advantages that will benefit the entire fund industry."
The Swedish fund market has experienced significant growth during the last decades, with over Skr1.600 billion SEK in assets under management in 2009 and more than 4000 funds registered.
Asgeir Thordarson, head of Fidelity's business in the Nordic Region is firmly backing the move: "We believe that initiatives to automate fund transactions are positive for the whole industry and that these efficiency gains will benefit all parties, including the end investor."