INTERNATIONAL: Report from EFAMA and SWIFT Confirms Progress in Industry Standardisation and Automation Rates

Wednesday November 25 2015

The European Fund and Asset Management Association (EFAMA) published in cooperation with SWIFT, a new report on the evolution of automation and standardisation rates of fund orders received by transfer agents (TAs) in the cross-border fund centres of Luxembourg and Ireland in the first half of 2015.

The report confirms that the automation rate in the fund industry increased to 83.5% in Q2 2015 from 82.6% in Q4 2014.

The report is an on-going campaign by EFAMA and SWIFT to highlight the advancement of automation and standardisation rates of orders of cross-border funds. 29 TAs from Ireland and Luxembourg participated in this survey, representing more than 80% of the total incoming third-party investment funds order volumes in both markets.

The report highlights include:

• The total order volume of cross-border funds increased by 11% to 17.5 million orders in the first half of 2015, from 15.8 million orders in the second half of 2014. The use of ISO messaging standards rose by 3.8 percentages points (p.p.) to 53.2%, while the use of manual processes and proprietary formats (FTP) dropped to 16.5% (-0.9 p.p.) and 30.3% (-2.9 p.p.), respectively, in the same time period.
• The total automation rate of orders processed by Luxembourg TAs reached 81.2% in Q2 2015 compared to 81.3% in Q4 2014. The ISO automation rate increased from 57.9% in Q4 2014 to 64.3% in Q2 2015, while the use of proprietary ftp decreased from 23.4% in Q4 2014 to 16.9% in Q2 2015.
• The total automation rate of orders processed by Irish TAs increased to 88.3% in Q2 2015, from 85.6% in Q4 2014. The percentage of automated orders based on the ISO messaging standards increase to 30.7% in Q2 2015, from 29.5% in Q4 2014.

Click here for the report.

Click on the link above for further details.