Calastone Limited, the independent cross-border transaction network for the mutual funds industry, announced today that wrap provider Nucleus has signed an agreement to become a member of Calastone's transaction network.
By connecting to Calastone's transaction network, Nucleus will benefit from fully electronic STP throughout the transaction lifecycle, with their preferred messaging protocol. They will gain electronic connectivity to fund providers through a single connection and orders will be sent electronically via Calastone, which provides a universal message communication and 'translation' service. Connecting to Calastone removes manual order entry processing, leading to lower costs, reduced risk and increased visibility and control of the order flow.
Distributors can connect directly from their existing Order Management Systems or use Calastone's Execution Management System (EMS), providing a consolidated view of all their order flow. This enables them to react to exceptions quickly and efficiently and deliver a better service to their clients.
Commenting on the agreement, Kevin Lee, Managing Director of Calastone said, "We are delighted to see another distributor benefiting from the Calastone mutual fund service. Calastone's service reduces cost, improves efficiency and removes risk for all our clients, which is why our offering is proving increasingly attractive to the industry in these challenging economic times. As Calastone continues to expand, Nucleus will benefit from the ability to send orders electronically to a growing number of fund providers, many of whom are using SWIFT messaging via Calastone. It is our ultimate aim to offer the mutual funds industry complete front-to-back STP regardless of the incumbent technology or connectivity chosen by each participant."
Andrew Smith, chief operating officer of Nucleus, added, "Calastone's ability to connect to the entire funds market without the need for the fund providers to incur costly technology spend will significantly increase our levels of STP. We are confident that Calastone's low cost and easy-to-connect model will continue to attract ever more fund providers and trtransfeer agents."