Fund transaction network Calastone has signed an agreement with Navesis-ETF to provide market connectivity for trade execution for platforms, fund supermarkets and wrap providers.
Navesis-ETF is an electronic trading platform designed to enhance the way exchange traded funds (ETFs) are traded.
The service will enable platforms, fund supermarkets and wrap providers the ability to execute ETF transactions via a low cost transaction model that will obtain efficient execution for their end clients.
Distributors will also be able to benefit from Calastone’s trade notification service, which will automatically route ETF settlement instructions to either the venue of settlement, or settlement agent.
Jason Griffin, the newly appointed head of sales at Navesis-ETF, said that market desire for an efficient means of electronic execution has had a major impact on the investment market and the type of products being distributed.
“The launch of this new infrastructure will allow Navesis to make efficient execution in ETFs available to the mutual funds market via a single technical connection to the Calastone transaction network. The simplicity of this solution will allow the platform market to better service their IFA clients and ultimately the end investor.”
Nick Blake, head of retail at Vanguard Asset Management, an ETF issuer, said: "An increasing amount of advisers are recognising the benefits that ETFs can add to a low cost, well diversified portfolio. Advisers are increasingly voting with their feet when it comes to a platform able to support the efficient use of ETFs and any initiative that makes ETFs more accessible to more investors has to be good news."
Kris Walesby from ETF Securities said: “Bringing together the operational efficiencies provided by Calastone with the execution ability of Navesis will enable IFAs to access exchange-traded products at the daily NAV in a cost efficient manner."
"This solution is one that both the investment and the platform communities have been demanding for some time and which will open up a new wave of ETP interest, especially set against the constructive background of the RDR.”
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