According to Calastone, the expansion was driven by demand from Australian clients for cross-border opportunities and by clients in New Zealand increasingly adopting automation. The network now allows for transaction between platforms, fund managers and counterparties in the two regions, and the first transactions have already been completed.
The Calastone technology offers improved interoperability, meaning asset managers and custodians do not have to standardise their own legacy technologies for straight-through processing.
It connects to existing systems and facilitates smoother processing and confirmation of fund orders between sending and receiving parties. This means improved efficiency, allowing for higher volumes of transactions at a lower cost.
Sarah Hayward, Calastone’s managing director for Australia, said: “New Zealand firms can now benefit from the efficiency of streamlined processing that we provide around the globe, where momentum, size and governance have out-dated manual processing.”
She added: “The New Zealand funds management industry is an international-facing market in which transaction volumes are increasing significantly.”
According to Tom Reiher, co-founder of fund administration business MMC, an increasing number of New Zealanders are starting to invest, and manual processes will become unsustainable.
He said: “Calastone brings a scalable, manageable and controllable solution that relieves us from the intense information flow associated with the large volume of transactions we manage every year.”