09 June 2014
Reporter: Tammy Facey

Euroclear launches ETF structure on BATS Chi-X Europe

Euroclear Bank will launch the first exchange-traded fund listed on BATS Chi-X Europe with an international structure.

The iShares MSCI Dividend will be available to trade on BATS thank to the partnership.

The new international structure is expected to improve liquidity, ease cross-border processing and lower overall costs and risks because it will use a single European settlement location.

Mark Hemsley, CEO of BATS Chi-X Europe, said: “This latest listing proves that listing on BATS brings material benefits to pan-European investors looking to access deep and liquid markets, and we are looking forward to working with Euroclear Bank in the near future.”

The second international ETF will provide safer electronic delivery-versus-payment settlement, according to Stephan Pouyat, global head of international markets at Euroclear.

He added: “As the market knows, expedient reconciliation as well as the timely and accurate payment of dividends is vital to the attractiveness of ETFs—and the optimal functioning of the market.”

Leland Clemons, head of iShares Capital Markets in Europe, the Middle East and Africa, said: “Market infrastructure improvements are imperative to support the rapid growth of the ETF industry and we hope to see this structure adopted by providers across Europe to drive the ETF market evolution.”

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