Wednesday January 8 2014
News Source: Global Exchanges
Focus: Trading Systems and Technology
Type: General
Capita Asset Services and Clearstream – the post-trade services provider of Deutsche Börse Group – have joined forces to establish a more streamlined, efficient and more secure issuance process for Exchange Traded Funds (ETFs) on the German market. The partnership allows Capita, as registrar and asset managing services business, to open an issuance account with Clearstream and directly mark balances up or down in Clearstream’s books, as required. This will go hand in hand with reconciliation procedures applied between the German central securities depository (CSD) Clearstream Banking AG, and Capita, as fund registrar, to enable more secure and efficient cross-border transactions.
The new, more streamlined issuance model, set to go live in Q1 2014, will contribute to meeting market demand for more efficient issuance for ETFs in Europe. According to data from the World Federation of Exchanges, compared to USD 8.17 trillion in the Americas, the volume of ETF trades in Europe was lower at around USD 532.4 billion from January to the end of September 2013.
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