Calastone, the cross-border transaction network for the mutual fund industry, has delivered its settlement service; fund providers, distributors and transfer agents are now settling transactions via Calastone.

The settlement model is based on a matching engine approach, designed to calculate counterparty net settlement positions and automated notification of legal title in fund unit positions. This approach enables firms to settle transactions more efficiently than on a "many-to-many" bilateral basis, the firm said in a statement.

Calastone announced its intention last November to build a settlement model in response to market demand for a primary market settlement approach specifically for mutual fund transactions.

“We are committed to providing a multi-domicile infrastructure from order routing through to settlement regardless of a participant’s preferred technology,” said Dan Llewellyn, head of market standards at Calastone.