BNY Mellon has expanded its real-time electronic messaging service for ETF order taking as part of an ongoing strategic effort to improve the primary market transactional experience for Authorised Participants (APs) and Market Makers (MMs).
Over the past few months, BNY Mellon has made a number of significant enhancements to its ETF order taking capabilities, consisting of integration with the Bloomberg ‘BSKT’ fixed income basket negotiation tool, custom order approval optionality for ETF portfolio managers, and advancement of its basket execution services. The latest release offers a new global standard to BNY Mellon’s clients worldwide for transmitting creation and redemption orders through a proprietary electronic message. The extended message structure supports all order types in all domiciles where BNY Mellon provides ETF Services.
“We are excited to advance our suite of order management solutions and better service the rapidly growing ETF industry by offering a global standard for electronic ETF order placement,” says Jeff McCarthy, CEO of Exchange Traded Products at BNY Mellon. “Our infrastructure supports primary market dealing automation and STP through the ability to interact with both liquidity providers and third party primary market dealer platforms.”
The benefits to this functionality include speed gains and mitigated risk by eliminating manual entry within BNY Mellon’s ETF order taking portal, ETF Center, and by offering direct connectivity to liquidity providers and third party order platforms. Through real-time transmissions and status updates, BNY Mellon offers a way for APs and MMs to effectively manage the growing volume of activity in the primary market. The service blends the arbitrage mechanism with electronic order messaging, providing a more efficient inventory management order entry service into market close, implying reduced total costs and improved spreads for ETFs trading in the secondary market.
Gary Buxton, EMEA ETF Chief Operating Officer at Invesco, says: “BNY Mellon’s enhancements across primary market dealing has enabled Invesco to leverage our proprietary primary market dealing platform across our entire European exchange traded fund product suite-enabling straight-through-processing across order entry, portfolio manager approval, reconciliation & share issuance.”