Sticking to the theme of automation, let’s talk about exchanges. Typically when we think of exchanges we think of used to reference traditional exchange-traded instruments like equities, FX, futures and options, but as time goes by more and more assets are moving on to electronic marketplaces. OTC instruments are under increasing pressure to come on to a transparent exchange, and exotic investments like physical diamonds and water entitlements are now tradable electronically.
Managed funds are an asset class that have had a troubled history around electronic trading in Australia. While they’ve been tradable online to some extent for a while, it has been less than five years since the back office went electronic and STP came to this asset class, replacing the fax machine. Trading managed funds through platforms is extremely expensive, and the ASX-backed mFunds solution has seen sluggish uptake since its launch in 2014 with just 173 transactions on the platform in May 2017.
Enter uXchange. An alternative to both platforms and mFunds, it slots perfectly into existing workflows and offers lower cost and higher transparency than any other option. No wonder it’s been embraced so enthusiastically by our existing clients, who got an early look. We can’t wait to show it to more dealer groups over the course of the year.