Euroclear UK & Ireland Integrates ETF Order Routing and Settlement

Euroclear UK & Ireland (EUI) has launched a service that integrates and automates exchange-traded fund (ETF) order routing and trade settlement. The service will be available to institutional and retail clients in the UK via independent financial advisers (IFAs) and fund platforms.

By leveraging the EMX Message System, fund distributors will be able to route ETF subscription and redemption orders using the same infrastructure they currently use for mutual fund order flows. Settlement of ETF trades can then take place at EUI, which currently settles trades in more than 1,600 ETFs.

Thornsten Michalik, global head of Deutsche Bank X-trackers, said: “We applaud moves to automate access to our ‘db X-trackers’ range of ETFs. We expect Euroclear UK & Ireland’s move to automate ETF order routing and settlement on an STP [straight-through processing] basis will benefit the IFA and retail community in terms of faster and safer processing, and less complexity.”

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