ETFs

APIs, automation, Bank of America, ETFs, Intercontinental Exchange

Intercontinental Exchange announced that Bank of America became the first authorized participant to use ICE ETF Hub’s FIX (Financial Information eXchange) API (application programming interface) to communicate ETF share creations…

SEC enacts new rules for derivatives on registered funds including limits and VaR

October 28, 2020

derivatives, ETFs, mutual funds, sec, VaR

The Securities and Exchange Commission today voted to enhance the regulatory framework for derivatives use by registered investment companies, including mutual funds (other than money market funds), exchange-traded funds (ETFs)…

DTCC boosts ETF clearing with multiple basket types and order customization

September 15, 2020

Clearing, DTCC, ETFs

The Depository Trust & Clearing Corporation (DTCC) announced that its subsidiary National Securities Clearing Corporation (NSCC) has received regulatory approval and has begun implementing rule changes designed to enhance the…

Finadium Big Ideas Quarterly Q3 2020 now online

August 4, 2020

Collateral Management, Securities Lending

collateral management ESG, ETFs, mutual funds, Securities Lending, topstory

Our quarterly presentation on research, news and events. Continue reading

Revenues and Expenses of US Mutual Funds and ETFs in Securities Lending

July 15, 2020

SEC, Securities Lending, Webinars

ETFs, mutual funds, sec, Securities Lending, topstory, US

Finadium presented our analysis of US mutual fund and ETF fund filings in securities lending for calendar year 2019, covering annual reports, Statements of Additional Information, and forms N-CEN and…

Finadium report and webinar: Revenues and Expenses of US Mutual Funds and ETFs in Securities Lending

July 14, 2020

Securities Lending

ETFs, Finadium, mutual funds, Securities Lending, topstory

Finadium has released a full analysis of US mutual fund and ETF securities lending revenue and expense data for calendar year 2019. This analysis discloses a complex level of expenses…

Client Webinar July 15: Revenues and Expenses of US Mutual Funds and ETFs in Securities Lending

June 30, 2020

ETFs, Investments, Securities Lending

ETFs, mutual funds, Securities Lending, topstory, US

July 15, 2020 10AM New York 3PM London 4PM Paris/Frankfurt This Finadium client webinar will present our analysis of US mutual fund and ETF fund filings in securities lending for…

Fed starts to buy corporate bond ETFs

May 12, 2020

Corporate Bonds, ETFs, Federal Reserve

New York Fed Announces Start of Certain Secondary Market Corporate Credit Facility Purchases on May 12 The Federal Reserve Bank of New York today announced that the Secondary Market Corporate…

Finadium: US Mutual Fund and ETF Revenues from Securities Lending Cash Collateral Pools

April 21, 2020

Securities Lending

cash collateral, ETFs, mutual funds, Securities Lending, topstory

A new report from Finadium quantifies how much money is at stake for US fund complexes in their securities lending cash collateral fees. In a high interest rate environment, fund…

BNY Mellon launches end-to-end tech for ETFs

April 15, 2020

BNY Mellon, ETFs

BNY Mellon announced the launch of an end-to-end technology solution to support ActiveShares non-transparent actively managed exchange-traded funds (ETFs). This solution delivers a digital workflow from order placement through execution…

Competitive analysis of the top securities borrowers from US mutual funds and ETFs (Premium)

March 10, 2020

ETFs, Investments, Prime Brokerage, Securities Lending

ETFs, Goldman Sachs, J.P. Morgan, Morgan Stanley, mutual funds, Scotiabank, Securities Lending, topstory

Data collected across $6.9 trillion in assets on loan by US mutual funds and ETFs show the top borrowers of securities from end of Q4 2019. The top three are…

Benchmarking cash collateral management fees in US securities lending (Premium)

February 25, 2020

Cash management, Collateral Management, Securities Lending

cash collateral, ETFs, mutual funds, Securities Lending, topstory, US

Finadium has conducted an annual review of cash collateral management fees for US 40 Act funds in securities lending programs. As usual, the data need some analysis to find what…

Wematch unveils matching protocol dedicated to ETF securities lending

January 31, 2020

ETFs, Securities Lending, Wematch

Wematch has released a new matching protocol dedicated to ETFs. The new feature is addressing the complexity of the European ETF market, where one single ISIN can be associated with…

Evidence on whether passive funds are disrupting the price discovery mechanism

January 23, 2020

ETFs, Investments

Blackrock, ETFs, Fama, French, Passive investing, topstory, Vanguard

An important function of capital markets is creating price discovery for the value of traded assets. The idea is that billions of investors should decide what they think the fair…

FT: Bank of Japan’s securities lending facility for ETFs set to avert liquidity squeeze

January 4, 2020

Bank of Japan, ETFs, Securities Lending

Japan acts to avert ETF market liquidity squeeze The Bank of Japan has launched an unusual lending facility for exchange traded funds as it tries to mitigate the market impact…

Zero fee fund managers have incentives to improve securities finance market structure

November 25, 2019

ETFs, Investments, Securities Lending

ETFs, mutual funds, Securities Lending, topstory, Zero fee

The growth of zero fee ETFs has fingers pointing in the direction of securities lending as a main way that these funds earn revenues. Managers in this space have an…

BNY Mellon: signs point to wider adoption of ETF collateral

October 3, 2019

BNY Mellon, collateral, ETFs

The market for exchange-traded funds (ETFs) has skyrocketed over the past quarter-century, thanks to the trillions of dollars investors are put¬ting to work in passive, index-tracking strategies. What hasn’t yet…

Citi, J.P. Morgan and SocGen join UCITS ETF platform

October 3, 2019

Barclays, Citi, ETFs, hanETF, J.P. Morgan, Societe Generale, UCITS

HANetf, Europe’s first independent ‘white label’ UCITS ETF platform has confirmed a further tranche of Authorised Participants (APs) for its range of on-platform funds: Citigroup Global Markets, JP Morgan Securities…

Royal Mint to develop first listed product on gold with UCITS ETF issuer

September 10, 2019

ETFs, hanETF, Royal Mint, UCITS

HANetf, a European UCITS ETF issuer, announced a collaboration with The Royal Mint to develop and launch a physically-backed gold ETC. This will make the Royal Mint the first sovereign…

Monday News Update, risk edition: bond markets, possible negative US rates, trading and more (Premium)

September 9, 2019

ETFs, Interest rates, Investments, Risk Management

bond markets, Brexit, Emerging Markets, ETFs, negative rates, topstory, US interest rates

There’s heady news in the markets these days. We’ve been paying attention to how investors should think about risk in positioning global bonds, the possibility of negative US interest rates,…

Credit Suisse completes transfer of InvestLab to Allfunds

September 6, 2019

News and Notes – Fintech, Uncategorized

Allfunds, Credit Suisse, ETFs, InvestLab, mutual funds

Credit Suisse announced the closing of the transfer of its third party investment fund platform InvestLab to Allfunds. In a company statement late June, Credit Suisse stated that “that the…

Tradeweb in ETF clearing partnership with EuroCCP

September 6, 2019

CSDR, ETFs, EuroCCP, Tradeweb

Tradeweb Markets and EuroCCP announced a strategic collaboration to facilitate central counterparty clearing for European Exchange Traded Funds (ETFs). It is expected to streamline European clients’ settlement process and minimize…

EFAMA: liquidity concerns about ETFs are misplaced

July 17, 2019

EFAMA, ETFs, Europe, Liquidity

EFAMA recently finalised a Comment Paper in response to the ECB’s November 2018 findings around liquidity and counterparty risks in ETFs, included in the ECB’s semi-annual Financial Stability Review. While…

We review the Better Finance report criticizing EU asset manager seclending fee splits (Premium)

May 13, 2019

ESMA, ETFs, Europe, Securities Lending

ESMA, ETFs, Europe, Securities Lending, topstory, UCITS

Independent European consumer organization BETTER FINANCE released a report on UCITS fee splits in the European securities lending market. They found the known wide disparities in fee splits and criticized…

Industry responds to SEC proposals on ETF custom basket creation/redemption (Premium)

April 22, 2019

ETFs, Investments

creation, ETFs, redemption, topstory

The ETF industry and associations are now responding to the SEC’s proposal that ETF operators be able to accept and provide “custom baskets” of cash and securities that are not…

MarketAxess and Virtu Financial partner on global ETF and Fixed Income trading

April 8, 2019

ETFs, MarketAxess, Virtue Financial

NEW YORK, April 04, 2019 (GLOBE NEWSWIRE) — Virtu Financial, Inc. (NASDAQ:VIRT) and MarketAxess Holdings, Inc. (NASDAQ: MKTX), two global leaders in electronic trading, today announced a partnership to provide…

Finadium launches enhanced analytics for US mutual funds and ETFs in securities lending; invites beta testers for online access

April 8, 2019

ETFs, Investments, Securities Lending, Technology

ETFs, Finadium, mutual funds, Securities Lending, topstory

Finadium has created an enhanced database of US mutual funds and ETFs in securities lending that incorporates SEC filings and additional industry content. The database provides clients a comprehensive analysis…

Fintech weekly deals and partnerships roundup

Medici Ventures takes minority stake in blockchain banking platform Overstock announced its wholly-owned blockchain subsidiary, Medici Ventures, has purchased a 5.1% stake in Bankorus, a blockchain banking platform focused on…

Autonomous Next: SoFi’s zero fee ETF and crypto app challenges financial industry

March 4, 2019

Coinbase, cryptocurrency, ETFs, robo-advisors, SoFi

SoFi has thrown two bricks through the window of the finance industry this week. The first is a set of no-fee Exchange Traded Funds (ETFs) to be distributed through its…

CNBC: Fidelity and Schwab cut trading commissions on more ETF

February 13, 2019

ETFs, fidelity, Schwab

The price war between major U.S. brokerages heated up Tuesday after Charles Schwab and Fidelity both announced they would expand commission-free trading to hundreds more exchange-traded funds. Both companies said…

Tradeweb platform posts record January at $624.5bn yoy

February 11, 2019

China, credit, derivatives, ETFs, MBS, Repo, Tradeweb, trading platforms

While growth was broad-based across all asset classes traded on the Tradeweb platform, some of the sharpest gains were noted in investment grade and high-yield US credit, mortgage-backed securities, and…

CBOE withdraws bitcoin ETF proposal

January 25, 2019

bitcoin, CBOE, ETFs, Securities and Exchange Commission, VanEck

CBOE has filed a “Notice of Withdrawal” for its proposal to the SEC for the listing and trading of a bitcoin ETF issued by VanEck under the name SolidX Bitcoin…

ETF.com: Get Ready For Zero Fee ETFs

January 5, 2019

ETFs, Securities Lending

A flat U.S. stock market and losses in the U.S. bond and most international markets mask what has been another impressive year for ETF inflows of approximately $280 billion as…

WSJ: Investors sell short $10 Billion of bond ETFs

December 12, 2018

Bonds, ETFs, Short selling, WSJ

Warning lights are flashing in a corner of U.S. debt markets. Bond investors scrambling to protect themselves from losses are increasingly using bets against the largest junk-bond exchange-traded funds and…

The ECB finds risk in ETF securities lending and TRS – is this real or a rehash of old stories?

December 3, 2018

ECB, ETFs, Securities Lending, Total Return Swaps

ECB, ETFs, Securities Lending, topstory, Total Return Swaps

The European Central Bank released their Financial Stability Report last week, including a feature on counterparty risk in synthetic and physical ETFs. We find some valid points in the analysis…

IOSCO identifies core market risks, including crypto assets and advanced tech – IIAC CEO

November 20, 2018

artificial intelligence, crypto assets, DLT, ETFs, GDPR, IIAC, IOSCO, machine learning

An open letter from Ian Russell, president and CEO of Investment Industry Association of Canada (IIAC) provides a perspective on risks in global capital markets, the priorities for further reform,…

FXStreet: bitcoin market in turmoil as first Swiss ETP listing approved

November 19, 2018

bitcoin, cryptocurrencies, ETFs, SIX

The bitcoin price opened the week’s trading with declines wiping out $13 billion after a week that saw $26 billion disappear in a 12-hour period. This is happening at a…

How investment automation and ESG factors are growing, together

October 30, 2018

Automation, Technology

AI ethics, automation, Blackrock, ESG, ETFGI, ETFs, Robo Global, World Federation of Exchanges

Investment dollars are at serious risk in an age of transparency for governments and companies alike, and investors can be fickle when it comes to market moving events that stem…

Bloomberg: Robo-ETF outperforms S&P 500

October 22, 2018

AIEQ, artificial intelligence, ETFs

A robot ETF has been leaving “pros in the dust, scoring wins on small-cap fliers”, reports Bloomberg. Everyone knows fund managers can’t keep up with benchmarks, and the last 12…

The SEC’s proposed ETF rules help ETF market makers but hurt securities lenders (Premium)

October 1, 2018

Liquidity Management, Operations, Securities Lending

ETFs, market makers, sec, Securities Lending, topstory

A new proposed regulation from the US Securities and Exchange Commission (SEC) will make the ETF market more efficient while predictably creating new winners and losers, in this case market…

What no-fee fund products mean for the securities lending market

August 7, 2018

ETFs, Securities Lending

ETFs, Securities Lending, topstory

The first no-fee ETFs and funds are now being marketed by Fidelity. Other asset managers have already seen share-price declines and more no-fee products are expected to follow. Securities lending…

Can Fixed Income ETF liquidity hold up against underlying liquidity changes? Panel respondents say yes

April 26, 2018

ETFs, Fixed Income, Liquidity Management

ETFs, Fixed Income, Liquidity, topstory

The Fixed Income ETF marketplace is undergoing scrutiny as liquidity gravitates to these products and away from the underlying. The fact is, ETFs are easier to trade than individual fixed…

FISL NYC 2018: data tells a story of shifting market dynamics and beneficial owner priorities

April 12, 2018

FISL

benchmarking, Beneficial Owners, DataLend, ETFs, FISL NYC 2018, HQLA, revenues, Securities Lending, topstory

The kick off to Finadium’s second annual FISL conference in New York was about understanding what’s changing in the securities lending markets as global economies respond to large policy changes.…

Barron’s: ETFs’ hidden source of return is securities lending

April 9, 2018

How can an index ETF beat the index? By earning some money on the side to offset its annual fees. Securities has found new life in the world of ETFs.…

High-yield ETFs attract record demand from short sellers

February 28, 2018

Outflows from high yield ETFs accelerated in 2018 and short demand for HY ETFs is at the highest level recorded, currently over $7 billion in total, IHS Markit data show. Demand…

FT: stock lending by ETF operators worries investors

February 5, 2018

collateral, ETFs, Securities Lending

Investors are concerned about loaning out stocks, arguing the income generated by securities lending is unlikely to offset the risks, especially in market downturns. One concern for investors is the…

Citi adds ETFs as eligible collateral for seclending

January 31, 2018

Citi, collateral management, ETFs

Citi added Exchange Traded Funds (ETFs) to the list of instruments it accepts as collateral in agency securities lending transactions. Using Markit’s IHS collateral lists to identify eligible ETF instruments –…

Moody’s: MiFID II will prompt greater use of ETFs in securities lending

January 8, 2018

ETFs, Moody's, Securities Lending

The introduction of the second instalment of the European Union’s Markets in Financial Instruments Directive will bring widespread change to how asset management products are designed and sold, said Marina…

Cost optimisation challenges for asset managers in 2017

September 21, 2017

mstan

ETFs, Europe, Investments, Regulatory, UK

asset managers, ETFs, James Treseler, MiFID II, Societe Generale, topstory