The Australian Stock Exchange has announced plans to develop a transaction processing service for unlisted managed funds, following a year-long feasibility analysis.
ASX believes the facility will deliver significant cost savings for the managed funds industry, by facilitating more efficient electronic transaction processing between fund managers, custodians, master funds and distributors.
"We regard this initiative as a key step in ASX's long-term strategy of supporting markets across different investment products," says ASX managing director and CEO Richard Humphry. "Taken with our earlier initiatives with listed funds and ETFs, this project strengthens ASX's commitment to the managed funds industry."
The first phase of the project will revolve around winning industry-wide support for the business model and functionality of the proposed service across the different market participants, says Humphry.