Euroclear To Settle PIMCO’s Managed Fixed Income ETF

Euroclear will, for the first time, provide settlement for PIMCO’s newly launched actively managed fixed income exchange traded fund (ETF).
By Joe Parsons(2147488729)
Euroclear will, for the first time, provide settlement for PIMCO’s newly launched actively managed fixed income exchange traded fund (ETF).

The ’PIMCO Low Duration U.S. Corporate Bond Source UCITS ETF’ was listed on the London Stock Exchange on Monday and is now available for trading.

Transaction settlement, both over-the-counter (OTC) and listed, will take place within the structure of Euroclear’s international central securities depository (ICSD).

“PIMCO is embracing more efficient post-trade processing, circumnavigating the need for time-consuming realignments and extra inventory buffers when buying an ETF in one domestic market, and selling it on in another,” says Stephan Pouyat, global head of capital markets, Euroclear.

“As a result of issuing in this international format, bid/offer spreads are expected to tighten considerably, which should drive greater investor interest in ETFs across Europe and beyond.”

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