State Street Global Advisors has signed up for an order routing service for its range of funds domiciled in the UK and Luxembourg.
Global fund transaction network Calastone will facilitate straight-through processing (STP) for fund dealing, providing a real-time order management process for State Street’s investment management clients.
It applies regardless of whether the funds are located onshore or offshore, or whether they communicate domestically or internationally with counterparties.
Yvonne Hurst, managing director of Europe at Calastone, says these services “ensure that the fax as a medium for transactions becomes extinct in the not too distant future”.
Calastone has a network of over 560 fund managers, distributors and transfer agents.
The European Fund and Asset Management Association (Efama) and Swift produce regular statistics for STP rates among transfer agents in Luxembourg and Ireland in what amounts to a campaign to make fax machines redundant. The total automation rates of fund orders received by transfer agents was 78.7% at the end of 2013 in Luxembourg and Ireland, compared to 77.7% a year earlier.
Five years ago, an 80% target for the automation rate of orders of cross-border funds was set.
Automation rates among transfer agent have increased because ISO messaging standards are more frequently used.
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