Hargreaves Lansdown goes live with Calastone Settlement Service
NEWS | 27 April 2016
Calastone, the global funds transaction network, today announced that Hargreaves Lansdown has gone live with Calastone Settlements, its innovative funds settlement solution.
Calastone Settlements is the only commercial settlement system designed specifically for the funds industry, automating the reconciliation and settlement process of investment funds. Participating firms such as Hargreaves Lansdown benefit from greater efficiency gained through automated matching of trades which in turn calculates the net settlement position between trading counterparties. Using Calastone Settlements, settlement payments are automated and are transacted net. This results in a reduction of settlement payments of up to 52%*.
In 2015 an estimated £158bn of settlement payments took place needlessly. Calastone’s technology, through the automated matching of trades, enables firms like Hargreaves Lansdown to make significant liquidity improvements.
Danny Cox, Head of Communications at Hargreaves Lansdown said, “Automatic matching of trades and the netting of settlement positions early in the day will improve the efficiency of our operational and treasury teams. Given the number of transactions that Hargreaves Lansdown processes this is of huge benefit.”
Commenting on the announcement, Jon Willis, Chief Commercial Officer, said, “Calastone Settlements addresses several issues which challenge the funds industry today and significantly improves efficiency for our clients. As a commercial settlement system, as defined by the FCA, we are delighted to be able to offer significant liquidity improvements to firms such as Hargreaves Lansdown through the automated matching and netting of trades.”
*by analysing 2015 Calastone & Investment Management Association trading data between fund managers and distributors Calastone calculates that 52% of trade settlement values could be processed via matched netting.
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Calastone is a financial technology company. Our mission is to make markets friction-free by connecting trading partners through our global fund transaction network. More than 1,000 customers in 28 domiciles are now processing domestic and cross border transactions via Calastone, benefiting from the cost and risk reduction opportunities transaction automation can offer.
Our purpose is to use smart technology solutions and industry collaboration to enable global distribution, reduce operational risk and enhance client profitability.
Calastone is part of Fintech50, ranked in The Sunday Times Hiscox Tech Track 100 and is one of the UK Government Tech City’s Future Fifty companies, recognised for high growth and transforming industries. Calastone has offices in London, Luxembourg, Hong Kong and Sydney.
About Hargreaves Lansdown
Hargreaves Lansdown is a leading provider of investment management and pension products and services to private investors and employers in the UK. Founded in Bristol by Peter Hargreaves and Stephen Lansdown in 1981, today we administer over £58.8 billion of client assets on behalf of 783,000 investors (31st December 2015). We are listed in the FTSE 100 as one of the largest companies in the UK.
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