ETF Securities (ETFS) has named Bank of America Merrill Lynch, Citi and Rabobank International as the counterparties backing its ETF Exchange funds.
The banks act as distribution partners, authorised participants and swap providers to the funds on the ETF Exchange platform (ETFX), and may be joined by further counterparties in the future.
ETFS says the swap-based ETFs are backed by the three banks, mitigating single counterparty exposure and credit risk. The issuer adds collateral is also held in excess of the Ucits guidelines.
ETF Exchange CEO Mark Weeks says: "We believe the evolution of ETFX will make redundant the current single bank issuance models."
The third generation ETF Exchange platform offers 21 equity funds, including resource-equity, double leveraged and double short ETFs.
The range is listed across five European exchanges and traded in pounds sterling, US dollars or euros.
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Launched 18 November