Calastone, the global funds network, is set to join SSC Technologies in a deal that will create a combined entity with enhanced capabilities across fund distribution and administration.
Calastone operates the world's largest funds network, connecting asset managers, distributors, and transfer agents through a digital platform that automates fund trading and settlement. The company has been a pioneer in applying distributed ledger technology to funds processing.
SSC Technologies provides software and services for asset management, including portfolio management, trading, and middle-office functions. The combination of Calastone's network with SSC's technology platform creates opportunities for more integrated solutions across the fund lifecycle.
For asset managers and distributors, the merged entity promises more seamless connectivity between fund distribution, trading, and administration functions. This integration could reduce operational complexity and improve efficiency across the funds value chain.
The deal reflects ongoing consolidation in financial services technology, as companies seek to offer more comprehensive solutions rather than point products. Asset managers increasingly prefer working with fewer vendors that can provide integrated capabilities across multiple functions.
Calastone's distributed ledger technology, which it has been implementing across its network, represents a significant asset in the transaction. The technology enables real-time settlement and improved transparency in fund transactions, addressing long-standing inefficiencies in the funds industry.
The combined organization will serve a global client base spanning asset managers, wealth managers, platforms, and other financial institutions. The scale of the merged entity could provide advantages in technology development and market reach.