State Street Global Exchange has launched the first online multi-sponsor exchange-traded fund platform for authorised participants (APs) in Europe.
FundConnect enables APs to trade multiple products through a secure, online interface.
The platform moves the European ETF order-taking process from one that traditionally relies on faxes to a real-time electronic platform.
SPDR ETFs is the first provider to go live on FundConnect.
Alexis Marinof, head of SPDR ETF in Europe, Middle East and Africa, says: “FundConnect enhances the speed and efficiency with which Authorised Participants can create and redeem units in our ETFs, a mechanism that SPDR ETF takes seriously because it plays such a vital role in supporting the liquidity needs of our clients. We believe developments like FundConnect, that help support liquidity providers across Europe, will play an important role in enabling the ETF industry to grow.”
By including FundConnect in the order-taking workflow, the time taken to complete an order has been significantly reduced. APs and ETF fund sponsors now have a real-time view of their orders and are able to run historic transactional reports from the platform.
FundConnect was first launched in the US market in 2008. With the growth of the European ETF market the platform has been enhanced to accommodate the increased complexities of the non-US marketplace with features such as multiple settlement locations, settlement type and estimated deal value.
Martine Bond, executive vice president and head of trading and clearing, State Street Global Exchange, says: “FundConnect transforms the way that ETFs are traded in Europe by replacing the reliance on faxes and phone calls with a single electronic platform that connects all market participants. Solutions to optimise front office capabilities are a priority. A recent State Street survey discovered that 81 percent of asset managers are planning to invest in order management and execution management systems over the next three years.”