SSGA completes migration of its SPDR ETFs to Euroclear Bank
23 April 2018 Brussels
Image: Shutterstock
State Street Global Advisors (SSGA) has completed the migration of all of its Standard and Poor's depositary receipt (SPDR) Irish-domiciled exchange-traded funds (ETFs) to Euroclear鈥檚 international central securities depository (ICSD) model.
SSGA has transitioned the remaining 62 ETFs under the SSGA SPDR ETFs Europe I & II classification to Euroclear鈥檚 ICSD model.
The related transactions will settle directly in Euroclear Bank. The first portion of SSGA鈥檚 SPDR ETFs migrated into Euroclear鈥檚 international issuance structure in December 2014.
According to Euroclear Bank, its international structure for ETFs brings increased efficiency to a process that had previously only been supported by fragmented domestic market practices across Europe.
Mark Harris, a capital markets strategist for SPDR ETFs, said: 鈥淭he international ETF model providers a centralised issuance and post-trade environment that removes much of the fragmentation seen under the domestic model for our multi listed products.鈥�
He said: 鈥淲e 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. We are pleased to be at the forefront of this infrastructure evolution and we look forward to continuing our partnership with Euroclear Bank and driving further efficiencies for our end investors.鈥�
Mohamed M鈥橰abti, deputy head of FundsPlace at Euroclear, commented: 鈥淪PDR were the first to migrate to our international ETF structure and we are proud they have continued the journey with us to this final migration.鈥�
He added: 鈥淗aving all SPDR ETFs on the ICSD platform will allow SSGA鈥檚 clients to benefit from all the features of the model, such as securities lending, multi-currency settlement and longer settlement windows.鈥�
SSGA has transitioned the remaining 62 ETFs under the SSGA SPDR ETFs Europe I & II classification to Euroclear鈥檚 ICSD model.
The related transactions will settle directly in Euroclear Bank. The first portion of SSGA鈥檚 SPDR ETFs migrated into Euroclear鈥檚 international issuance structure in December 2014.
According to Euroclear Bank, its international structure for ETFs brings increased efficiency to a process that had previously only been supported by fragmented domestic market practices across Europe.
Mark Harris, a capital markets strategist for SPDR ETFs, said: 鈥淭he international ETF model providers a centralised issuance and post-trade environment that removes much of the fragmentation seen under the domestic model for our multi listed products.鈥�
He said: 鈥淲e 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. We are pleased to be at the forefront of this infrastructure evolution and we look forward to continuing our partnership with Euroclear Bank and driving further efficiencies for our end investors.鈥�
Mohamed M鈥橰abti, deputy head of FundsPlace at Euroclear, commented: 鈥淪PDR were the first to migrate to our international ETF structure and we are proud they have continued the journey with us to this final migration.鈥�
He added: 鈥淗aving all SPDR ETFs on the ICSD platform will allow SSGA鈥檚 clients to benefit from all the features of the model, such as securities lending, multi-currency settlement and longer settlement windows.鈥�
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