SSGA migrates Irish ETFs onto Euroclear ICSD model

Euroclear has recently boosted investment into its fund market infrastructure service FundsPlace.

By Joe Parsons

State Street’s asset management arm has now migrated all of its SPDR Irish-domiciled exchange traded funds (ETF) onto Euroclear’s international settlement platform.

State Street Global Advisors (SSGA) first moved the ETFs onto Euroclear’s international issuance structure in 2014 and had recently completed the transition of its remaining 62 ETFs.

“The international ETF model provides a centralised issuance and post-trade environment that removes much of the fragmentation seen under the domestic model for our multi listed products,” said Mark Harris, capital markets strategists for SPDR ETFs, SSGA.

“We believe the model will, over time, deliver a number of key benefits for our market participants whilst providing a solid platform for the continued growth of our European ETF business.”

Euroclear has recently boosted investment into its fund market infrastructure service, FundsPlace, by adding automated straight-through processing in settlement and asset servicing for ETFs. It also plans to expand its collateral management service to include ETFs. 

In September last year, California-based asset manager Franklin Templeton launched four smart-beta European exchange traded funds (ETFs) through Euroclear’s issuance structure.

“Having all SPDR ETFs on the ICSD platform will allow SSGA’s clients to benefit from all the features of the model, such as securities lending, multi-currency settlement and longer settlement windows,” said Mohamed M’Rabti, deputy head of FundsPlace, Euroclear.