Industry Updates

Ultumus partners with Calastone to ‘streamline’ ETF creation-redemption

Partnership ‘timely’ against T+1 settlement backdrop

Lauren Gibbons

Bernie Thurston

Ultumus has partnered with Calastone to “streamline” the ETF creation-redemption process for asset servicers and ETF issuers.

The firm will integrate Calastone’s ETF servicing technology to centralise processes such as order management, cash confirmation, settlement and reporting.

Ultumus said the partnership comes as the ETF industry faces the upcoming switch to T+1 settlement for US stocks in May.

The firm’s ETF creation redemption platform – COSMOS – was launched in 2023 and improves connections between authorised participants (APs), asset managers and transfer agents.

Calastone's ETF servicing technology aims to streamline the process of managing primary market orders, from capturing orders to final settlement.

The firm said the technology allows ETF servicers to improve their service quality, reduce costs, lower risks and expand their operations.

It also provides better connectivity, faster processing and greater transparency for APs and issuers.

Bernie Thurston, CEO at Ultumus, said: “We are thrilled to have partnered with Calastone, and doing so has accelerated our ability to provide a complete solution for an offering for fund managers and transfer agents.”

Brian Godins, chief commercial officer at Calastone, added: “This will ensure that the growing demands of the ETF market are met with innovative and responsive solutions.”

Last August, HSBC partnered with Calastone on an ETF asset servicing solution, providing ETF order management, portfolio composition file (PCF) production and AP services.

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