STP rates on the rise: EFAMA, SWIFT

Order volumes and total automation rates increased in 2015. This is a key finding of a new report by the European Fund and Asset Management Association (EFAMA) and SWIFT 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 2015.
Peter De Proft, EFAMA director general, notes: “The continuous progress towards ISO adoption and the impressive 15 percent drop in manual processing of funds orders confirm that the European investment funds industry continued to improve the efficiency of its back-office operations in 2015. This is tangible proof of the industry’s commitment to reduce operational risks and to ensure ever-improving services for its clients.”
Fabian Vandenreydt, global head of securities, Innotribe and the SWIFT Institute, SWIFT, adds: “Back in 2009, when we launched the first EFAMA-SWIFT report, we, together as an industry, had established an objective to reach 80 percent of automated cross-border fund orders, which seemed realistic, yet ambitious.
Today, with more than 85 percent of cross-border funds orders automated, the ongoing progress of the transfer agent communities of Luxembourg and Ireland is a testament to the commitment of these markets to become more efficient for the benefit of its clients, and to alleviate the high costs and risks associated with manual processing.
Along with the substantial increase of funds order volumes (which progressed by 11 percent compared to 2014), it is also encouraging to note that, when TAs are setting up new links with new order givers, ISO adoption is, more than ever, the first choice.
With EFAMA’s recommendation of a single ISO standard to be used in the funds industry, we are clearly moving in the right direction, and now is the opportunity to focus on the potential next buckets of automation, namely for transfers and account openings, where we see the biggest potential for standardisation.”