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
META launches new platform for software providers
19 January 2018 | London | Reporter: Jenna Lomax
META Finance is designed to help financial institutions and software providers face the challenges brought by fintech and regulations, such as General Data Protection Regulation
S&P reaffirms OCC’s AA+ rating
19 January 2018 | Chicago | Reporter: Jenna Lomax
S&P has reaffirmed OCC’s financial strength rating of “AA+/stable”
National Settlement Depository implements API
19 January 2018 | Moscow | Reporter: Jenna Lomax
The National Settlement Depository has applied the application programming interface to its online banking services
BNY Mellon sees asset servicing fees growth
18 January 2018 | New York | Reporter: Zsuzsa Szabo
BNY Mellon’s asset servicing fees increased 6 percent year-over-year
AxiomSL hires new EMEA head
18 January 2018 | London | Reporter: Jenna Lomax
Ward will be responsible for developing strategic global relationships
MetLife selects HSBC for custody services
18 January 2018 | Hong Kong | Reporter: Becky Butcher
HSBC Securities Services has been selected as custodian for MetLife across three key markets in Asia
Societe Generale Securities Services and OFI Asset Management have executed the first transactions via the IZNES platform on the Paris market
More news