Calastone, the largest global funds transaction network, today announces the successful go-live of its blockchain Distributed Market Infrastructure (DMI).
The technology underpinning Calastone’s network has now been migrated to a blockchain-enabled market infrastructure. The migration of Calastone’s global network of more than 1,800 customers across 41 markets is a world-first and represents the largest community of global financial services organisations connecting and transacting via distributed ledger technology.
Less than two years since Calastone announced the completion of its first phase to test the feasibility of using blockchain to develop a common global marketplace for the trading and settlement of funds, the company’s DMI is today live. This represents a major step in enabling digitalisation and friction-free trading at a significant global scale. Calastone has highlighted the scale of tangible value the DMI could bring to the industry, forecasting more than £3.4bn in savings per year for the mutual funds market worldwide, achieved through the technological mutualisation of the distribution model.
Financial services organisations around the world - whichever size and scale - can, through the DMI, now access a fully mutualised global funds community whereby the trading, settlement and servicing of funds is conducted in real-time. This will play a key role in stripping out the everincreasing costs, operational burdens and risks inherent within the current model.
Campbell Brierley, Calastone’s Chief Innovation Officer, comments;
“Developing the DMI has been a fulfilling journey of innovation and it is incredibly exciting to have completed a world first for the financial services sector. Over 1,800 clients across 41 markets are now transacting on the DMI, transforming how fund organisations interact with one another.
Through Calastone’s blockchain-enabled market infrastructure all participants across the fund’s world can work together seamlessly and view trading activity in real-time. Information now ripples instantly across the market, a step change from the previous, fragmented model. Financial services firms worldwide can, via the DMI, utilise new services, enhanced capabilities and new investment opportunities, allowing them to evolve their proposition to one that will be more competitive and valuable long-term.”
At launch, the DMI immediately solves several key points of friction which are fully automated and visible as all participants are connected into a common infrastructure. It will also bring a new service, the Sub-Register, which creates a shared, real-time view and history of the registers between trading partners at any point in the distribution chain.
Leo Chen, Managing Director and Head of Asia adds:
“Launching the DMI today marks an important step, not just for Calastone but for the entire global funds industry. Fund managers and banks in Asia are seeing more disruptions than ever before amid rapid developments, including the arrival of virtual banks in Hong Kong. Financial institutions need to continuously invest in technological improvement to gain a competitive advantage and to seize opportunities as they arise. Only those who can keep up with digital transformation, including advances in blockchain technology, will stay on top of the highly competitive Asian funds industry."
The launch of DMI is a significant achievement, evolving Calastone’s proposition in line with the needs of tomorrow - both for fund managers and the new generation of Asian investors. I am pleased to now welcome our network of clients onto an infrastructure that is best equipped to meet their needs now, and for the long term.”
In the lead up to the go-live, Calastone has been engaged with a community of early adopters who have had access to the technology, including RBC Investor & Treasury Services, Bravura Solutions, Seven Investment Management, Multrees and Tilney Investment Management.