The Calastone network should provide more visibility of the order lifecycle, reducing market risk without any additional implementation, integration or development costs.
It is designed to allow all parties in the process to connect through a single line of communication, translating messages in to a common form determined by AP Pension. Distributors will then gain access to every fund provider on the Calastone network.
The move comes as a response from AP Pension to the increase in automation within the global funds industry. It currently administers about 100 billion Danish kroner (£9.6 billion) in institutional assets from about 2,000 corporate pension schemes, including UCITS funds, internally managed funds and alternative investment funds.
Jon Willis, chief commercial officer at Calastone, said: “Smaller distributors, such as AP Pension, traditionally chose to remain on manual processing as they believed the implementation costs far outweighed the benefits of finding a straight-through processing order routing solution. This is no longer the case.”
The mandate is also part of Calastone’s move towards providing a more global market coverage.