Transaction Services

ORDER
ROUTING

TRADE
NOTIFICATION

SETTLEMENTS

REPORTING

TRANSFERS

Calastone Settlements automates the reconciliation and settlement process of investment funds, enabling trading counterparties to significantly improve liquidity through transaction netting.

As trading volumes grow, fund providers, administrators, distributors and platforms face operational challenges in managing post trade reconciliation. Additional costs are incurred in settlement due to the financial provisions required to cover all settlement payment flows, tying up operating capital and reducing liquidity.

Calastone Settlements is the only commercial settlement system designed specifically for the funds industry, providing the most efficient way of managing settlement through a single account.

Post trade, our netting engine matches trade instructions between counterparties calculating the net settlement position, which is agreed and confirmed by T+1. Participants then know exactly what payments are due on each settlement date.

Calastone calculates that settlement payment volumes and values could be reduced by up to 52%* simply by adopting our net settlement solution.

  • Reduced liquidity and cash flow exposure, by up to 52%
  • Settlement complete by 10am
  • Whole of market solution, enabling payment automation with counterparties regardless of whether or not they trade via Calastone
  • Real-time visibility of trades and account balances
  • Automated reconciliation and increased back office efficiencies

*by analysing 2015 Calastone & IMA trading data between fund managers and distributors Calastone calculates that 52% of trade settlement values could be processed via matched netting.

Being part of the Calastone settlement solution, we will now benefit from full STP throughout the lifecycle of orders routed through Calastone. No entry duplication, full transparency throughout and better still, we now receive earlier information about our liquidity obligations.

Head of Transfer Agency, UK Fund Manager

Featured articles

Want to find out more?

Get in touch