TO scrap tedious paperwork, a securities user group is studying electronic matching between brokers and investment managers.
The system would include electronic instruction from the managers to the trustee or custodian.
The Hong Kong Securities Group, an informal body comprised primarily of fund managers, custodians and brokers, has chosen the Society for Worldwide Interbank Financial Telecommunications (SWIFT) as the communication medium for the so-called Electronic Trade Confirmation (ETC).
Group chairman, G T Management client administration director Bleddyn Gambold, said ETC would replace all telephone calls, fax transmission and manual matching of investment orders.
'Auto reconciliation between the fund managers and the custodian, which is done twice a month, can be conducted daily and any discrepancies can be spotted easily,' he said.
There will be savings in staff costs by reducing the amount of clerical work for both fund managers and brokers, and reduced risk.
