For the first time, Euroclear Finland and Euroclear Sweden, the central securities depositories (CSDs) for the Finnish and Swedish markets, respectively, are making actively-managed exchange traded funds (ETFs) available for settlement and custody in their book-entry systems.
Nordea is marking the event by launching the region’s first two actively-managed ETFs on NASDAQ OMX Stockholm and NASDAQ OMX Helsinki. Depending upon where the two multi-listed ETFs are traded, transactions will settle locally in kronor (SEK) at Euroclear Sweden or in euros (EUR) at Euroclear Finland.
The two new ETFs listed by the bank are Nordea Global Emerging Market Equities Undertakings for Collective Investment in Transferable Securities (UCITS) ETF and Nordea Stable Equities UCITS ETF. Their pricing will be determined and provided by a dedicated market-maker throughout the trading day. Trading in actively-managed ETFs is the same as trading in equities, so both retail and institutional clients will need a book-entry account with either Euroclear Finland and Euroclear Sweden to process these transactions.
“Euroclear Finland and Euroclear Sweden’s electronic book-entry systems are the most secure and modern way for investors to manage their investments,” said Heikki Ylipekkala, head of commercial at the two CSDs.
“We are delighted to add Nordea’s two innovative ETFs to the many types of domestic securities we service. Actively-managed ETFs have established themselves as viable investment choices in countries like the United States, where according to ETF experts, actively-managed US-listed ETFs account for around US$14bn of assets under management.”
Jari Kivihuhta, managing director of Nordea Investment Funds, added: “The number of actively-managed funds is expected to rise, particularly as we experience a growing demand for equity-like products. Our mutual funds have been successful during the last few years. We feel very comfortable to launch a new kind of actively managed ETF with Euroclear, and to benefit from their years of fund processing experience.”
Rising interest rates, excitement around blockchain use cases and cross-border payments were all hot topics at this year's AFP conference in San Deigo.
On-Demand Treasury Management Solutions continue to gain increased adoption in the US and EMEA regions.
Direct carrier billing is currently a competitive payments industry in Europe, but will it flourish under PSD2? EE and Microsoft think so.
This year’s EuroFinance conference in Barcelona is billed to be bigger than ever so we have picked out 10 of the best sessions taking place next week.