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Calastone – UK-Based Global Funds Network to switch to Blockchain Technology in May

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On December 3rd, Reuters UK reported that UK based global fund network Calastone is switching its system for fund trade clearing services to blockchains. Calastone is responsible for processing mutual funds of over 1700 financial companies including massive companies like JPMorgan Asset management and Invesco.
Approximately nine million messages are sent across various counterparties every month, which is worth over £170 billion. This move will set out to transform the current services to become automated finally. Every time you buy into a fund, three separate messages are required to be sent digitally between enterprises, the first message sent to initiate an order, second as a receipt and finally, the third to confirm the price, says Reuters.
Andrew Tomlinson, The Chief marketing officer at Calastone went on to say that, ‘The more you can automate, the more you de-risk, you more you streamline, the more you speed up.’ The ‘Big Four’ audit firm cites data for Calastone and firm predicts that with the acceptance and adoption of blockchain technology, the global fund industry could benefit a minimum of £3.4 billion pounds in trading and settlement process in a year. Reuters noticed that the fund's industry is regularly being crunched due to rising costs and rigid regulations after the 2008 financial crises.
Julien Hammerson, CEO, Calastone said today in an interview that, ‘at present, funds are “hampered by continually rising costs and the threat of competition, ultimately rendering the current system economically and operationally unsustainable.’ Earlier this year, Calastone published a research which showed that with the use of blockchain, mutual funds up to $2.6 billion could be saved.
Depository Trust & Clearing Corporation (DTCC), a global trade giant, whose trade information warehouse provides event processing services for almost 98% of all the credit derivatives in the worldwide market entered has the testing phase of its efforts of re-establishing distributed ledger technology (DLT) using Blockchain.

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