ASX in FundConnect connectivity pact with InfoComp
29 July 2002 | 3124 views | 0
The Australian Stock Exchange (ASX) has begun talks with fund management software vendor InfoComp on the development of a straight-through-to-package link with ASX's proposed unlisted managed funds transaction processing service, FundConnect.
InfoComp provides fund management software, encompassing administration, tax compliance and unit registry functionality to a range of product providers and asset managers within the unlisted managed funds industry.
Under the heads of agreement, the two parties will explore connectivity of InfoComp customers, through its Composer fund administration system to ASX FundConnect - which is due to be rolled out in 2003.
Mark Spiers, ASX FundConnect project director, explains: "There are a number of large fund managers who use Composer to manage their unit registry, so we see a great benefit in facilitating enhancements such as straight-through processing to the software package. Ultimately this would make a significant contribution to delivering a critical mass of fund managers to the ASX FundConnect service."
Rob DeDominicis, InfoComp's general manager, adds: "Once connected, fund managers should then be well positioned to benefit from the improved cost efficiencies and quicker turnaround times that are expected."
In a bid to reassure customers that ASX is not attempting to trespass on their turf, Spiers notes that ASX FundConnect is not planning to run a managed fund unit trust registry service and has no intention to build and run aggregation platforms or to offer portfolio and custody services.
"ASX FundConnect is a service that's not aimed to compete with its customers but to deliver them potential for lower costs, greater efficiency and improved client service," he says.
Discussions on developing straight through processing enhancements to InfoComp's fund administration system are expected to take two months. Following this, both parties expect to enter into more detailed negotiations on a development plan.
This is the ASX's second agreement with a key service provider for ASX FundConnect, following its heads of agreement with IWL, announced in late May.