JP Morgan Asset Management has teamed up with global funds network Calastone to introduce an automated settlement system to its money market funds (MMF).
Through the asset manager’s ‘Morgan Money’ trading platform, it will initially use Calastone to enhance its entire settlements process, becoming the first in the market to offer automated settlement to its users.
The partnership enables JP Morgan Asset Management’s users to settle trades in real-time, while the Calastone platform digitalises the investment and reporting process.
“We are excited to partner with Calastone to bring automated settlements to the platform, allowing our users to settle trades in real-time, with automated trade workflow, initiated from one Morgan Money platform,” said Paul Przybylski, head of product strategy and development at JP Morgan Asset Management.
The partnership strengthens the existing relationship between the two firms with Calastone already providing trade automation services for JP Morgan funds globally. The current coronavirus pandemic has also highlighted the benefits of end-to-end automation and the digitalisation for post-trade processes between fund providers and investors.
“Traditional models remain under immense pressure and have very quickly been seen to come up short. The key to managing this new post-COVID world, and to staying attractive in it, sits in embracing new, smart technologies – and making the switch from manual to automated,” added Ed Lopez, chief revenue officer, Calastone.
“To see JP Morgan share in our vision and champion innovation is fantastic – and it gives us even greater confidence of the real potential for how far our Money Markets Services can go long-term.”