State Street Corporation has announced the launch of a Financial Information eXchange (FIX) application programming interface (API) for its Fund Connect ETF platform, a global online portal for the creation and redemption of ETFs within the firm’s GlobalLink product suite.
The firm writes that the FIX enhancement, now available to all participants on the platform, offers connectivity and electronic communication through an integral industry protocol used in electronic trading. This will allow market participants to send orders directly from their order management system (OMS) to the Fund Connect ETF platform streamlining the ETF creation and redemption process.
“As the ETF market continues to evolve in complexity, issuers and market participants are increasingly looking to simplify and automate trading workflows to operate as seamlessly, efficiently and securely as possible,” says Lori Coakley, global business head of Fund Connect ETF. “By developing the FIX protocol for our Fund Connect platform, we are delivering on our strategy to expand connectivity and technology within the global ETF primary market to enable increased volumes and efficiency of orders.”
Fund Connect ETF also recently released the ability for issuers or their agents to approve AP creations and redemptions via RESTful API continuing to deliver increased connectivity and straight through processing for the ETF primary market.
“A digitised workflow is our goal for ETF servicing,” says Frank Koudelka, global head of ETF Solutions at State Street. “Our partners across the authorized participant community have signaled a willingness to invest in system-to-system connectivity. Expanding from proprietary APIs to the FIX industry standard will bring us closer to our goal of 100 per cent digital interactions. This is another example of innovations we’ve brought to our operating model as we celebrate 30 years of servicing ETFs since the launch of SPY.”
Fund Connect ETF is a global online portal for the creation and redemption of ETFs, designed as a single point of access to many issuers. The firm writes that for nearly 15 years, the portal’s automated order placement solution and comprehensive integration to order management systems has supplied a direct link between APs, distributors, order takers, sub-advisors and issuers. The new FIX connectivity method drives increased efficiency, reduced operational risk and enhanced communication between parties.