Servicing ETFs is becoming more complex as the market continues to grow in popularity and as the number of funds on offer rises, State Street says.
In order to address the increasing complexity of servicing, State Street has launched a tool to help clients process ETFs order more efficiently, on an automated and streamlined basis.
The firm's new Assisted Trading service allows authorised participants to simultaneously enter the ETFs they want to trade and identify any restricted shares.
Restricted shares are not eligible for proprietary trading and also change daily, depending on underwriting, mergers, investments and a range of other activities. These shares are usually found within ETFs on a manual basis.
The new tool segregates restricted shares, which are then sent to State Street Global Markets to be traded. This process also ensures the authorised participant complies with regulatory and exchange requirements when trading ETFs.
The Assisted Trading service is accessed via FundConnect, State Street's online ETF trading platform.
This is integrated with the firm's transfer agency record keeping segment, which releases the approved orders to the ETF accounting platform and the depository through DTCC Fast.
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