Country for PR: United Kingdom
Contributor: PR Newswire Europe
Thursday, February 22 2018 - 19:00
Calastone Forecasts Over USD2.6bn Savings for the Mutual Funds Market in Move to Blockchain
LONDON, February 21, 2018 /PRNewswire-AsiaNet/ --

- Study from Calastone reveals migrating to blockchain could generate over USD 
2.6bn  (*GBP1.9bn) cost savings for the global mutual funds market     
- The study, follows a recent report by Forrester, which shows Calastone has 
already delivered more than USD 641m (GBP458 million) in savings for mutual 
funds by bringing automation to major global funds markets     
- Data from Calastone demonstrates the significant value potential the 
Blockchain has for industry and investors

    Research from Calastone, the global funds transaction network, forecasts 
more than USD2.6bn (*GBP1.9bn) worth of potential cost savings for the global 
mutual funds market as a result of moving to a blockchain-enabled distributed 
market infrastructure.

    The forecast savings demonstrate the scale of financial impact that greater 
automation and interconnectivity could bring to the funds market. Calastone's 
predictions further substantiate another study released by Forrester, one of 
the world's leading research and advisory firms, which has analysed the 
financial impact Calastone's current transaction network has already had on the 
global funds market. Forrester's research reveals that transaction automation 
through Calastone has delivered USD 641m (GBP458 million) in savings over the 
previous six years.

    Forrester research shows significant cost savings today at a global, market 

    Forrester conducted a global market survey 
[ ] of 234 mutual funds 
organisations to determine the tangible value and financial impact Calastone's 
transaction network has had on the global funds market in moving the manual 
process of funds trading to an automated network infrastructure. The results of 
the research have shown that, in addressing the friction and operational 
inefficiencies throughout the transaction cycle across all trading 
counterparties, Calastone has generated significant net benefits for the 
market, producing more than USD 641m (GBP458 million) of cost savings over the 
previous six years. The research covers Calastone's key global markets 
including the UK, Ireland, Luxembourg, Hong Kong, Singapore, Taiwan and 

    The results showed five key advantages for fund firms in connecting to 
Calastone's automated transaction network; improved process times, reduction in 
manual errors (and the time required to address them), ability to scale and 
process greater volumes of trades via increased flexibility in trading windows, 
faster response times and greater transparency via better audit traceability.

    Calastone forecasts even greater savings for the future - the vast 
potential of blockchain...

    Where Forrester's study highlights the value that automation through 
Calastone's global fund transaction network has already brought to the trading 
of mutual funds to date,  Calastone's subsequent analysis assesses the far 
greater scale of savings its blockchain-enabled distributed market 
infrastructure (DMI) could deliver for the global market, estimating 
significant further cost efficiencies totalling over USD 2.6bn (*GBP1.9bn) 

    The numbers released by Calastone represent the tangible, financial value 
that a blockchain enabled distributed market infrastructure can deliver, 
through stripping-out many of the remaining inefficiencies currently embedded 
in the system, resulting in increasing cost, risk, operational and regulatory 
pressures. Where Calastone's network automation has been successful already, a 
distributed market infrastructure offers a scalable solution to meet the needs 
of fund industry participants and investors now and for the future.

    In June, Calastone successfully completed the first phase of its 
Blockchain-enabled distributed market infrastructure (DMI) proof-of-concept and 
in December the company announced its core network technology will migrate onto 
blockchain technology in 2019.

    Commenting on the results of the study, Julien Hammerson, CEO Calastone, 

    "Our mission has been to address the frictional cost of trading mutual 
funds and Forrester's research demonstrates the considerable value Calastone 
has delivered for the market already - more than GBP458 million over the 
previous six years. These results are testament to the impact technology can 
have on an industry at a global level. Though that is just the first step...

    Whilst what we have achieved to date has enabled sizeable savings for the 
sector, our own analysis highlights how significantly these benefits can be 
accelerated when using blockchain technology to automate the entire lifecycle 
of mutual fund transactions, from order placement through to the settlement and 
payment, through our new distributed market infrastructure - from millions to 
over USD 2.6bn each year in cost savings"

    About Calastone Calastone is the largest global funds transaction network, 
connecting many of the world's leading financial organisations.  Our mission is 
to make funds accessible to everyone by reducing the frictional cost of 
trading. We use smart technology solutions and industry collaboration to lower 
operational risk and enhance client profitability through digitisation and 

    Over 1,400 customers in 35 countries and territories benefit from 
Calastone's services,  processing over 7 million messages and GBP85 billion of 
transactions each month.

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

    *Calastone Methodology

    Calastone has calculated the potential cost savings of moving to a 
distributed and mutualised market infrastructure using data from Deloitte's 
recent 2016 study, "Europe's fund expenses at a crossroads; The benefits of 
mutualizing the cost of distribution." Calastone's calculation determines the 
potential basis point (bps) savings across key global markets. Calastone's bps 
calculation has been applied to mutual fund assets under management, at an 
individual market level, in the following markets; UK, Ireland, Luxembourg, 
Hong Kong, Singapore, Taiwan & Australia.

    Currency calculation from GBP to USD @ 1.40 as at 20 June 2017

    For more information, please contact:
    FTI Consulting LLP 
    Ollie Bailey-Pratt / Darius Alexander 
    Tel: +44-020-3727-1000

SOURCE: Calastone