Bringing you live news and features since 2006 

Trident launch

BNY Mellon introduces first one-stop automated process for ETF creation and redemption


BNY Mellon has launched the industry's first one-stop process for authorised participants (APs) to automate the creation and redemption of exchange traded funds (ETF).

The enhancements allow an AP to utilise the BNY Mellon ETF Center to propose and negotiate ETF baskets of underlying assets with a fund sponsor during the creation and redemption process. This is a significant improvement over the common industry practice, which required APs to utilise more than one venue to propose, negotiate and settle ETF baskets, BNY Mellon says.

APs are large financial institutions or market specialists that play a critical role in the ETF marketplace as they are chosen by an ETF sponsor to obtain the underlying assets needed to create or redeem an ETF. Once an AP has negotiated an ETF basket with a sponsor, the AP transfers the shares to a custodian bank.

"Helping APs become more efficient ultimately benefits the other participants in the ETF marketplace, ranging from issuers to those in the secondary trading market," says Steve Cook, Global Head of ETF Services at BNY Mellon. "We pay particular attention to technology enhancements that support the AP community, because this community ultimately drives new assets into our clients' ETF products."
Cook notes the systematic ability to propose and negotiate ETF baskets is particularly important with fixed income ETFs and brings greater flexibility and efficiency to APs when processing fixed income ETFs. 

Latest News

Figment Europe, a provider of institutional staking infrastructure, writes that it is solidifying its presence in the heart of Europe’s..
Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..

Related Articles

Jigna Gibb, Bloomberg
Bloomberg Indices has recently hired Jigna Gibb as Head of Commodities and Crypto Index Products, to lead its commodities and...
Robert Minter, director of ETF investment strategy at abrdn takes a look at passive investing in commodities and shares his...
Ryan McCormack, Invesco
This year sees the 25th anniversary of Invesco’s QQQ, the USD240 billion ETF – the fifth largest ETF in the...
The European ETF market achieved a record 28 per cent growth – reaching over USD1.8 trillion assets under management (AUM)...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by