BNY Mellon is to expand its real-time electronic messaging service for exchange-traded fund (ETF) order taking.
The enhancement is part of an ongoing strategic effort to improve the primary market transactional experience for authorised participants (APs) and market makers (MMs).
The latest expansion offers a new global standard to BNY Mellon’s clients worldwide for transmitting creation and redemption orders through a proprietary electronic message.
The extended message structure supports all order types in all domiciles where BNY Mellon provides ETF Services.
According to BNY Mellon, the benefits to this functionality include speed gains and mitigated risk by eliminating manual entry within BNY Mellon’s ETF order taking portal, ETF centre, and by offering direct connectivity to liquidity providers and third-party order platforms.
Through real-time transmissions and status updates, the service blends the arbitrage mechanism with electronic order messaging, providing an inventory management order entry service into market close.
BNY Mellon explained that this will reduce total costs and improved spreads for ETFs trading in the secondary market.
The announcement comes after BNY Mellon made a number of enhancements to its ETF order taking capabilities, consisting of integration with the Bloomberg BSKT fixed income basket negotiation tool, custom order approval optionality for ETF portfolio managers, and advancement of its basket execution services.
Gary Buxton, Europe, the Middle East and Africa, ETF COO at Invesco, said: “BNY Mellon’s enhancements across primary market dealing has enabled Invesco to leverage our proprietary primary market dealing platform across our entire European ETF product suite-enabling straight-through-processing (STP) across order entry, portfolio manager approval, reconciliation and share issuance.”
Jeff McCarthy, CEO of exchange-traded products at BNY Mellon, commented: “We are excited to advance our suite of order management solutions and better service the rapidly growing ETF industry by offering a global standard for electronic ETF order placement.”
He added: “Our infrastructure supports primary market dealing automation and STP through the ability to interact with both liquidity providers and third-party primary market dealer platforms.”
