BNY Mellon has announced the launch of its new ETF Intelligent Basket BuilderSM tool and ETF Asset Flow Analytics Dashboard, the latest in an array of new capabilities and features designed to support the growth and digitisation of the ETF operating model.
The ETF Intelligent Basket BuilderSM is part of BNY Mellon’s ETF Centre and available on the NEXEN Portal and is designed to provide a central point of communication between the sell side and the buy side of the ETF ecosystem. The firm writes that the solution facilitates the negotiation, execution, and transmission of creation and redemption (C/R) orders — saving time and providing greater transparency in the negotiation process.
Leveraging integrated fixed income data from a third-party provider, the ETF Intelligent Basket Builder is designed to enable users to seamlessly pull key data metrics, such as pricing and liquidity rankings, into a set list of securities to be included in the C/R order. It also allows users to maintain historical reporting metrics in-line with the ETF rule (6c-11) requirements. Key features and benefits include:
• The ability to negotiate custom baskets electronically between front office and market makers or authorised participants, eliminating the need to manage basket negotiations offline
• Centralised commentary within the order ticket to facilitate communications (i.e. chat screens) between third parties; helping to support audit compliance
• Delivers straight-through-processing of custom basket activity, from negotiation to order placement and settlement, without manual intervention
• Provides secure entitlements to liquidity providers for basket negotiation access as dictated by the portfolio manager or capital market specialist
The ETF Asset Flow Analytics Dashboard is designed to allows buy-side managers to customise their analysis of primary market trading. ETF firms can now also identify trends and have deeper conversations with critical liquidity participants. The firm writes that these new features build upon capabilities released throughout 2021, which include the new Post-Order Fees engine and new digitised ETF Basket Data offerings.
Ben Slavin, Global Head of ETFs, Asset Servicing, BNY Mellon, says: “Our ETF services programme continues to focus on offering best-in-class features to help to increase transparency and execution quality for clients in the primary market where transactions have historically been cumbersome. As part of our broader strategy, we remain focused on digitising systems and leveraging data to drive efficiencies and allow clients to make better-informed decisions.”