What is Calastone announcing?
Calastone has announced the migration of core parts of the Calastone Transaction Network (CTN) to a new blockchain enabled technological infrastructure. This follows a detailed Proof of Concept (PoC) which Calastone has been undertaking since 2014, looking at how such technology can be deployed to the benefit of the funds industry.
What is a Distributed Market Infrastructure?
Much of the complexity and cost in the global mutual fund market is due to complexity in the global network, different standards and different trading processes.
The Distributed Market Infrastructure standardises all mutual fund orders and settlements on a consistent basis which allows for simpler global processing and increased efficiency.
Normalising these processes allows for the first time the introduction of improved services to all participants, for example improved transparency for clients and participants. Calastone has hands on experience of these variations and is well placed to help the market migrate to become a more efficient and effective service for the end-investor.
Why are Calastone moving CTN to blockchain?
Calastone, as a technology business, continually monitors developments in technology that reduce the cost of trading for our clients. Our work on blockchain, or distributed ledger technology (DLT), shows that this has considerable advantages in scalability and reliability for key parts of CTN.
How will the move to blockchain affect my connection to CTN?
The move to our new blockchain infrastructure will not impact how you connect to Calastone, indeed you can continue to connect to us in the same way you do today.
What does Calastone’s move to blockchain mean for customers?
Customers of Calastone will continue to receive the excellent service they currently receive, and the internal changes we are making will not have a direct impact on them. However, as the DMI is rolled out customers will have the option to migrate to the new offering, and benefit from the reduced reconciliations and access to enhanced services on offer.
How will this move be impacted by GDPR / PII?
Neither GDPR nor PII are specific to the technology used and there is no new requirement on the new technology compared to the current CTN technology.