In response to the fund industry’s demand, Calastone launched a settlement service to standardise and improve settlement automation. They have since fulfilled their additional promise to provide a complete managed net settlement service through a partnership with Barclays.
With Cofunds accounting for over 26% of the UK platform market, this marks a significant point in Calastone and Barclays efforts to add market standardisation and improved automation to the settlements function within the funds industry.
As well as reducing cash flow exposure, the full managed fund settlement service will significantly reduce counter party and liquidity risk across the market, enabling the fund industry to take advantage of full automation from point of trade through to settlement finality.
Stephen Mohan, Managing Director of Operational Services at Cofunds said, “We already use and benefit from a number of Calastone services. The integration of this product is the ideal step forward in helping us streamline and improve automation within our cash management sector. We are always looking at ways in which we can improve efficiencies and reduce risk and these benefits, along with the reduced cash flow exposure, are the main drivers for us signing up.”
Phil Goffin, Executive Director at Calastone said, “Cofunds signing up to our complete managed net settlement service marks a significant milestone. This further emphasises the early success of the service, and is a market moving step in standardising settlement across the market.”
Bill Wrest, Head of Business Development, NBFI at Barclays said, “Cofunds represents a significant piece of the UK platform market and therefore we’re delighted that they have chosen to work with us and Calastone to implement this net settlement service.”