J.P. Morgan has launched an automated fund order routing and settlement service for unlisted trust and hedge fund dealing in Australia and New Zealand.
The new service – called Fund Order Routing and Settlement Service (FORSS) – is expected to meet the growing demand for greater efficiency in placing and tracking transactions, bringing the Australian and New Zealand market more in line with other developed financial sectors, J.P. Morgan said.
According to J.P. Morgan, the majority of transactions for unlisted trusts and hedge funds in Australia are carried out via manual processes such as fax, telephone or spreadsheet.
J.P. Morgan stated that by providing large institutional investors with the capacity to deal with multiple counterparties through an automated channel, it removes the need for the client to communicate multiple times throughout the progression of the order.
The service is also electronically enabled for both inbound and outbound movements, and can integrate directly with counterparties in the market via industry messaging networks such as SWIFT, J.P. Morgan added.
"The new platform substantially reduces error risk for the client and speeds up the whole process, enabling clients to easily access the data online and in real time," said David Braga, managing director of J.P. Morgan worldwide securities services.
"The workflow, order automation and integrated reporting gives our clients full transparency of their fund assets from order placement through to settlement."
J.P. Morgan said the launch of FORSS forms part of the development of its global technology platform for Australian and New Zealand clients.
