BNY Mellon has introduced extended dealing hours for Irish-domiciled exchange traded funds (ETFs) to enable global distribution of the products.
Known as 24×5 ETF dealing, BNY Mellon has increased dealing hours to ETF issuers by using its transfer agency hubs in Singapore and New York. This will allow issuers to deal Irish UCITS ETFs from Monday morning in Singapore all the way through to Friday afternoon in New York.
The introduction of the new dealing services will enable distribution of Irish UCITS ETFs to the Asia-Pacific (APAC) and Latin America regions, two key markets for the expansion of the UCITS brand.
“We are excited to extend our ETF dealing hours for Irish UCITS products. It allows ETF issuers to leverage our local support in APAC and the US, thus providing them with greater distribution and growth potential for their ETFs,” said Jeff McCarthy, global head of ETF services, BNY Mellon.
BNY Mellon has set out a strategic priority for its ETF business, with one of its main aims is to improve the primary market transactional experience for authorised participants and market makers.
It is also aiming to create a more efficient global ETF distribution structure and a global ETF system, aligning it with initiatives such as Euroclear’s international settlement model, in order to create uniformity and certainty across all regions for market participants.
“European ETFs continue to gain momentum on a global level and it is exciting to see BNY Mellon offering local time zone support in these jurisdictions,” added Mohamed M’Rabti, deputy head of FundsPlace, Euroclear. “This enhancement complements our international settlement model whereby Euroclear offers ETF issuers direct settlement into Mexico and Hong Kong through ETF.”