Singapore-based investment manager New Silk Road Investment has outsourced its trading to Northern Trust.
Through Northern Trust’s integrated trading solutions, New Silk Road will be able to rescue costs and risk, improve transparency and operational efficiency and manage regulatory compliance, the firm said.
New Silk Road invests in Asian companies with the goal of long-term returns. Northern Trust has provided global custody services for the firm’s funds since 2011.
Outsourcing trading functions is becoming increasingly popular among Asia-based asset managers in anticipation of the upcoming T+1 transition in North America. Time differences mean that the shortened settlement cycle will provide a series of challenges for APAC managers’ existing systems.
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Gerard Walsh, global head of client solutions, banking and markets at Northern Trust, said: “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.”
Yen Leng Ong, country executive for Southeast Asia at Northern Trust, commented: “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. 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.”
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