“Northern Trust is very pleased to be working with New Silk Road to ensure their US dollar execution, trade matching, clearing, settlement process, and trade-related foreign exchange are managed as a single lifecycle.”
Northern Trust’s Integrated Trading Solutions (ITS) has been selected to provide outsourced trading for New Silk Road Investment Pte Ltd., a Singapore-based investment manager.
ITS is offered through Institutional Brokerage, a part of Northern Trust Banking and Markets which also provides foreign exchange, securities lending and transition management services.
The outsourced trading service combines expertise in equities and fixed income, exchange traded derivatives, futures and exchange traded funds (ETFs) across global markets.
Providing coverage from multiple trading locations, access to high-quality liquidity and fully integrated middle and back-office service, the ITS platform helps asset owners and asset managers to meaningfully lower costs, reduce risk, manage regulatory compliance, and enhance transparency and operational efficiency.
FX execution, matching, clearing, settlement
Founded in 2009, New Silk Road invests in Asian companies to achieve long-term returns. The transition to shortened settlement in the U.S., Mexico, and Canada on May 28 from trade date +2 (T+2) to trade date +1 (T+1) will present challenges for Asia-based asset managers who are heavily impacted due to time zone differences. Many managers have sought ways to smooth out that transition by outsourcing their trading functions.
In addition to the new remit for trading services, Northern Trust continues to provide global custody services for New Silk Road funds which it has done since 2011.
Yen Leng Ong, Country Executive, Southeast Asia, Northern Trust, said: “New Silk Road came to us looking for a solution to help navigate cross-border trading challenges amidst a changing market structure in North America. By enabling our client-centric solution approach, we determined that our ITS offering was the right fit to provide seamless integrated middle to back-office processing along with efficient trade execution. We look forward to continuing to build our relationship with New Silk Road to enhance their global trading needs.”
Gerard Walsh, Global Head of Client Solutions, Banking and Markets, Northern Trust, commented: “T+1 introduces significant market timing challenges to investors and managers in Singapore and New Silk Road has a strong understanding of the issues involved in this change. Northern Trust is very pleased to be working with New Silk Road to ensure their US dollar execution, trade matching, clearing, settlement process, and trade-related foreign exchange are managed as a single lifecycle.”
