Brussels
16 November 2015
Reporter: Stephanie Palmer

BlackRock gains ETF migration partners


BlackRock has partnered up with Euroclear and Clearstream to migrate 20 ETFs to an international issuance and settlement structure.

BlackRock issued its first ETF with an international security structure in 2013, and since March this year is has launched all of its new funds on this platform. The migration marks the first time that pre-existing funds will be transferred to the new model.

The 20 iShare UCITS ETFs account for $2.9 billion in assets under administration as of October 2015, and are denominated in US dollars, British pounds and euros.

In the centralised post-trade structure, issuance and settlement of ETFs is carried out by an international central securities depository (ICSD) in a single location, simplifying post-trade processing and allowing market makers to offer more competitive trading spreads to investors.

Leland Clemons, global head of iShares capital markets at BlackRock, said: “As the global demand for European-domiciled ETFs continues to grow at pace, the ecosystem supporting the industry has never been more important.”

“Our partnership with Euroclear and Clearstream to create a multi-national central settlement and clearing venue for European securities is testament to our commitment to making ETF trading more efficient. We hope to build an industry consensus around this simpler model.”

Stephan Pouyat, global head of capital markets at Euroclear, added: “What we are doing is effectively simplifying the European issuance and settlement process for this much sought-after investment product. The huge growth in European ETFs shows no sign of abating, and it is critical that the infrastructure providers like Euroclear have the right platforms and processes in place to manage the increasing volumes.”

Bernard Tancré, head of business solutions for investment fund services at Clearstream, said: “A significant advantage of this ICSD issuance model is that it utilises the well proven and efficient settlement infrastructure for Eurobonds that market participants from around the world have been accustomed for more than 40 years.”

He added: “Seamless connectivity is crucial to the user experience, and we are proud to provide this system alongside our domestic issuance model.”

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Merrill Lynch first to fall foul of UK’s EMIR reporting rules
23 October 2017 | London | Reporter: Drew Nicol
The bank accepted a £34.52 million penalty relating to 68.5 million unreported transactions between February 2014 and February 2016
Wolters Kluwer chosen for risk and reg by Polish bank
23 October 2017 | Warsaw | Reporter: Theo Andrew
Bank BPS will use the OneSumX solutions for static and dynamic projection analysis, liquidity reporting, interest-rate and foreign-exchange risk, as well as value-at-risk analysis
Iberclear bank on Citi to provide global custody
20 October 2017 | Madrid | Reporter: Jenna Lomax
The agreement, signed at this years Sibos conference in Toronto, will enable Spanish clearing houses to settle international securities via local CSDs
Clearstream promises post-Brexit services continuity
20 October 2017 | London | Reporter: Jenna Lomax
Despite the uncertainty that came after the referendum results last year, Clearstream said its main objective through Brexit was to minimise risk of cross-border settlement
AI will be transformative, but is still in early stages
19 October 2017 | Toronto | Reporter: Stephanie Palmer
Artificial intelligence is a “transformational technology” that will improve productivity and security, and provide a competitive advantage, according to a live poll at Sibos 2017
Security and standards key in blockchain solutions
19 October 2017 | Toronto | Reporter: Stephanie Palmer
Distributed ledger technology (DLT) solutions should embed security measures at their very core, especially in the financial services space, according to Sibos panellists
LCH promotes Daniel Maguire to CEO
19 October 2017 | London | Reporter: Jenna Lomax
Maguire, who has been COO of the same department since April this year, was previously senior vice president for commodity exotics and hybrids at J.P. Morgan
More news