TA automation rates reach over 86 percent 11 December 2017Brussels Reporter: Jenna Lomax
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The total automation rate of processed orders of cross-border funds received in Luxembourg and Ireland reached 86.6 percent in Q2 2017, according to a report by Swift and the European Fund and Asset Management Association (EFAMA).
In the report, 28 transfer agents (TAs) commented on the use of automation for fund orders. The survey also found that the use of International Organisation for Standardisation (ISO) messaging standards increased from 53.4 percent in Q4 2016 to 54.2 percent in Q2 2017, while the use of manual processes remained stable at 13.4 percent.
The total automation rate of orders processed by Luxembourg TAs reached 84 percent in Q2 2017, a slight dip from the 84.4 percent recorded in Q4 2016. Irish TAs saw much higher automation rates of 90.6 percent, remaining relatively steady.
ISO automation rates in Luxembourg, however, increased from 68.3 percent in Q4 2016 to 69.4 percent in Q2 2017, while the use of ISO messaging for Ireland’s TAs went up to just 30.3 percent in Q2 2017 compared to 27.8 percent in Q4 2016.
Also, total order volumes for cross-border funds increased by 13.3 percent, with 19.5 million orders received in the first half of 2017, in total, up from 17.2 million in the second half of 2016.
Tanja Van Sterthem, funds market manager at Swift, said: “Today, with nearly 87 percent of cross-border funds orders automated, the ongoing progress of Luxembourg and Irish transfer agents proves that these markets are committed and want to become more efficient for the benefit of its customers.”
She added: “Along with the continuous increase of funds order volumes, which increased by 13.3 percent, compared to the second half of 2016, it is also encouraging to note that ISO adoption is the first choice for TAs when setting up new links with new counterparts.”
Peter De Proft, director of EFAMA, commented: “Looking forward, the European Commission’s ambition to tackling remaining barriers to the cross-border distribution of funds will contribute to further support investor demand and make fund processing standardisation even more important.”
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