Euroclear UK & Ireland is now offering the ability to route orders in 180 Deutsche Bank db X-trackers Exchange Traded Funds (ETFs) through its EMX Message System, offering access to users of the system to NAV-based pricing for the ETFs when routing their orders for settlement.
Euroclear says this creates automated end-to-end transaction processing for Deutsche Banks ETFs. db X-trackers is among the five largest ETF companies in the world with about $50 billion in assets under management.
The EMX system is used for mutual fund order flows as well as ETF subscription and redemption orders. The 300 U.K. distributors and IFAs using the system now have access to automated order placement through electronic book-entry settlement of trades in more than 1,600 ETFs. Order routing is free for distributors and intermediaries.
We expect to see other large asset management houses embracing full end-to-end processing automation for ETFs with Euroclear UK & Ireland in 2012, as the product continues to attract investor inflows, says Yannic Weber, CEO of Euroclear UK & Ireland. We are delighted to be working with Deutsche Bank, one of the worlds premier providers of ETFs, to provide a secure and efficient processing environment. A major service feature is that our clients and their intermediaries can buy ETFs directly from the product provider, cutting out the need and cost of separate relationships.
Manooj Mistry, U.K. head of db X-trackers, adds: ETFs are already known for their low total expense ratios. By enabling users in the UK to trade directly using NAV-based pricing, costs can potentially be driven down even more.
(CG)