State Street Global Advisors has issued 40 of its existing SPDR exchange traded funds on Euroclear’s FundSettle fund processing platform. The move comes in response to client requests to align their ETF order execution with transactions in mutual funds.
SSGA issues 40 SPDR ETFs on Euroclear’s FundSettle platform
The 40 ETFs includes SPDR’s 29 Sector ETFs and enables end investors to buy and sell shares in ETFs like mutual funds, at the end-of-day “net asset value”. Those European investors who exclusively invest in mutual funds will now have access to the 40 SPDR ETFs.
Launched in 2000 by Euroclear, FundSettle automates and standardises the straight-through processing of offshore and domestic fund transactions. It allows fund buyers to process subscriptions, redemptions, transfers and switches. It also covers investment funds worldwide and has links with over 900 fund administrators across 27 domiciles, via straight-through processing with third-party distributors such as private banks and wealth managers.
Philippe Roset, head of SPDR Netherlands, said in a statement: “The issuance of our SPDR ETFs on FundSettle is in response to client requests, who wanted to be able to align their ETF order execution with transactions in mutual funds. Clients can now do so on an intra-day basis on an exchange, or in the same way as mutual funds on the FundSettle platform. We have chosen to include our full range of 29 World, US, and European sector ETFs because we believe that sector investing is a valuable alternative to traditional investment approaches, such as growth or value investing.”
Mohamed M’Rabti, head of ETFs and FundSettle, Euroclear added: “These sector ETFs have been issued within our Core platform using the international issuance model. Settlement will be centralised in Euroclear’s ICSD model, which makes the post-trade process of exchange trades easier and allows for better spreads and liquidity for investors. Furthermore, a selection of SPDR ETFs will be available on our FundSettle platform to support the distribution effort of SPDR ETFs in reaching our mutual fund clients across Europe.”
The SPDR ETFs will still be available on the exchanges where they are listed.
Other providers with ETFs on the FundSettle platform include iShares who issued 50 in 2013.