Time to change the way the liquidity market works______

Ed Lopez, European Revenue Officer

People are often surprised to learn there are still corners of the financial markets that are not fully digitised. One such is the liquidity market – where corporate treasurers come to park their surplus cash in money market funds.

There have been changes – most notably the arrival of money market portals that display all the data treasurers need to make their investment choices. But the changes have not gone far enough.

The portals allow treasurers to trade electronically when they invest in a liquidity fund. But the reporting back – which is vital for managing positions – can be slow and cumbersome.

Different funds report in different formats. Treasurers have to do their own work at integrating it all. That may involve good old-fashioned spreadsheets. One way or another it adds cost – and risks.

At Calastone, we want to change all of this.

We have launched a new, fully integrated, digitised service which automates both the investment process and the reporting. It is a potential game-changer for the liquidity markets.

Liquidity funds that move onto the Calastone Money Markets Service can offer their investors real-time reporting – ensuring trade certainty and immediacy. It’s a differentiator for the early adopters.

For treasurers, access to a fully integrated, end-to-end service means all the key information comes straight through to any treasury management system in a standard format. It makes the task of position-monitoring so much easier. It saves money and reduces the risks that inevitably come from re-keying data across multiple systems.

The new service will allow liquidity funds to build a more flexible business model that paves the way for lower-cost asset classes and better returns for investors. It offers big pluses for both the funds and their investors. Find out more here

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