Calastone to Bring Mutual Funds Market Onto Blockchain in 2019

London (ots/PRNewswire) -

Calastone, the global funds transaction network, today announces
that the technology underpinning the core of Calastone's global
transaction network will be migrated onto a full blockchain-enabled
infrastructure.

Calastone's network connects more than 1,300 financial service
organisations across 34 global markets processing over £80bn of
trades and 7 million messages each month, making it the largest
global fund transaction network. Calastone has transformed the funds
sector, enabling frictionless trading by making it possible for all
trading entities and counterparties to connect, interact, process and
settle transactions digitally.

In June, Calastone successfully completed the first phase of its
blockchain-enabled distributed market infrastructure (DMI)
proof-of-concept (PoC), which saw Calastone test and verify the
feasibility of using the technology to create a global marketplace
for the trading and settlement of mutual funds. Today the company
announces that 2019 will see the technology underpinning the core of
its network moving to a private and permissioned based blockchain
infrastructure.

The mutual funds market remains a sector challenged by operational
inefficiencies, cost and risk, often resulting in an inability to
meet fast evolving customer demands. The current requirement to
replicate and reconcile records across the value chain creates an
overhead which dwarfs the benefits already offered by Calastone's
trading and settlement solutions. The move to blockchain enables the
firm's global customer base to plan for and deliver major
improvements in a controlled, measured way.

This migration enables Calastone to achieve the highest levels of
operational resilience and scale through the distributed, yet private
nature of the new blockchain infrastructure. The PoC has proven the
performance capabilities that enable the processing of transaction
volumes and fund flows to be many times greater than are expected
today, demonstrating scalability of the new infrastructure.

Julien Hammerson, CEO Calastone adds:

"As we build the business we consistently put innovation and
customers first. Our vision remains to work with the industry to
reduce the overall total cost of ownership by making it friction-free
and increasing value for all market participants. Our services have
introduced significant operational and cost efficiencies into the
sector and as we scale our business for the future, we are ensuring
we have the connectivity and technology to continue to service the
increasingly sophisticated demands for efficiency, value and speed.

In making this first step using blockchain, we are providing our
customers with the requisite tools they need, to be future-ready. We
are delivering a solution that will not disrupt the current
connectivity and interaction our customers have with our network,
rather putting them in pole position to make the step change to the
blockchain when timely and additive to their specific objectives and
requirements."

As an industry sector under increasing cost, operational and
regulatory pressures - with the advent of GDPR and the imminent
introduction of MiFID II - Calastone recognises that blockchain can
provide much needed relief for the funds market in reducing the cost
of friction-free trading and the total cost of ownership, whilst
delivering the speed of service and regulatory transparency, which
will soon be a basic pre-requisite worldwide.

Ken Tregidgo, Deputy CEO, Calastone comments on the scale of
opportunity blockchain affords the funds sector:

"The funds industry is subject to increasing cost pressures,
whilst investors continue to demand increasing returns and regulatory
transparency. The initial shift we're making towards blockchain
marks the first major step to addressing these issues offering
significant potential for the entire industry. Our network already
connects all market participants, from fund managers to transfer
agents and distributors, and introducing this new technology offers
significant potential for the future, for a friction-free and a
more streamlined process for all counterparties worldwide.

Whilst the potential for long term change is great, the migration
path for customers to take advantage of the future infrastructure
will remain seamless, enabling clients to move when they are ready.
A blockchain-enabled marketplace means alleviating operational
inefficiencies, increasing performance and generating greater
savings - a win-win for everybody.

We're conscious that developing a better infrastructure, ready to
meet the future needs of the industry is a long process, though
we're thrilled to see the first stages of this come into effect and
are excited about the opportunities it will bring."

For more information on Calastone's blockchain-enabled DMI,
please go to: http://www.calastone.com/insights/a-brave-new-world-fun
ds-europe-interview-with-ken-tregidgo/

About Calastone

Calastone is the largest global funds transaction network,
connecting many of the world's leading financial organisations. Over
1,300 customers in 34 countries and territories benefit from
Calastone's services, processing over 7 million messages and £80
billion of transactions each month.

Our mission is to reduce the frictional cost of trading using
smart technology solutions and industry collaboration, lowering
operational risk and enhancing customer profitability through
digitisation and automation.

Calastone is headquartered in London and has offices in
Luxembourg, Hong Kong, Taiwan, Singapore and Sydney.

ots Originaltext: Calastone
Im Internet recherchierbar: http://www.presseportal.de

Contact:
, please contact:

FTI Consulting LLP
Ollie Bailey-Pratt / Darius Alexander
calastone@fticonsulting.com
Tel: +44-(0)20-372-710-00

Original-Content von: Calastone, übermittelt durch news aktuell