Wells Fargo has become an authorised participant on Intercontinental Exchange’s ICE ETF Hub and has joined the platform’s advisory committee.An Authorized Participant is an institutional firm authorised by an ETF issuer to facilitate creations or redemptions of ETF shares.
“We’re excited to have an opportunity to work with a leading firm like Wells Fargo as they continue growing their presence in the ETF primary market,” says Peter Borstelmann, Head of ICE ETF Hub. “The growing community of market participants on ICE ETF Hub provides valuable insights as we work to bring more efficiencies to the creation and redemption process.”
ICE ETF Hub has been developed as an industry-wide, open architecture, primary market platform for ETFs, which creates a more standardised and simplified process for ETF creation and redemption. It currently offers support for both US-listed domestic equity and fixed income ETFs.
ICE recently launched functionality for the assembly of custom baskets in an automated way via APIs and ICE ETF Hub’s front-end user interfaces, and ICE Chat functionality is planned to launch in the third quarter of 2020. Connectivity between ICE ETF Hub and ICE FI Select for secondary market cash bond execution is also planned to launch during the third quarter, and support for US-listed international equity ETFs is planned for later in 2020.
“Wells Fargo is excited to partner with ICE ETF Hub in our efforts to facilitate liquidity provision across all constituents of the ETF community,” says John Leone, Managing Director, Head of Quantitative Strategy at Wells Fargo Corporate and Investment Banking. “Through our collaboration with ICE, ETF Hub has emerged as the provider of a modernised, transactional messaging platform. As a foundational platform component, ETF Hub promises to enhance the standardisation, efficiency and stability across all phases of the ETF liquidity cycle.”
