ASX looking at back office solutions
The Australian Stock Exchange (ASX) says it is building a back office system to simplify transactions between fund managers.
The system will work in much the same way as the Chess system which simplifies the flow of equities sales and purchases.
ASX development, clearing and settlementt business manager Peter Skalkos says these comments should not be confused with recent comments about the listing of managed funds.
"The reason the ASX is interested in back office systems is because we are an infrastructure provider, especially in the areas of broking," Skalkos says.
"There is a perception in the market that we want to list all managed funds but we are actually more interested in managed funds transaction processing."
At the same time Skalkos rejects the ideas that this system will target dealer groups and fund managers but says instead the ASX back office system will be more focussed on master trusts, IDPS, margin lenders and brokers.
He says at the back end of each of these processes there is an exchange of information but it occurs without common standards.
However the ASX has focussed its attention on the creation of a hub where information is stored and passed on, an idea that would be able to handle a high level of transactions as well as participants in the system.
Skalkos says if the ASX board approves the model for such a system the first phase would only deal with the wholesale unit trusts and participants such as IDPSs, custodians, fund managers and portfolio administrators.
The second phase would then pick up margin lender and brokers, however Skalkos says the effort in creating the system would not be worth if for the wholesale side of the industry alone. For this reason it would extend to cover retail unit trusts and super funds as well.
"The ASX would like to be involved with developing and implementing a solution to conflicting back office information systems," Skalkos says.
"However there has to be recognition by the market of our services as well and we feel we are well placed and with skills to reach a result."
AUTHOR
Jason Spits
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
