Goldman Sachs latest to join ICE ETF Hub

Goldman follows JP Morgan, Bank of America, Citadel Securities and Virtu Financial in joining the ICE ETF ecosystem.

US exchange group ICE has confirmed that Goldman Sachs has connected to its exchange traded funds (ETF) hub as an authorised participant.

The investment bank follows other major institutions that are already live on the platform, including JP Morgan, Bank of America, Citadel Securities and Virtu Financial, all of which were the first four authorised participants using the ecosystem.

ICE ETF Hub was established last year as a platform to support the ongoing growth of ETFs for issuers, authorised participants, market makers and custodians. It allows users to assemble and place creation/redemption baskets in a more standardised and automated fashion.

“ICE ETF Hub enables us to improve operational efficiencies in the primary markets for ETFs through standardisation and modernisation of processes. We look forward to the benefits of the creation and redemption processes for both equity and fixed income ETFs,” said Amy Hong, global head of market structure strategy at Goldman Sachs.

Last month, ICE confirmed the addition of a FIX API to allow authorised participants to connect to the ETF Hub to manage create and redeem orders. Multi-order functionality was also rolled out so that multiple transactions to be submitted as one order.

The ecosystem supports US-listed domestic equity and fixed income ETFs, but ICE plans to expand this later in the year to support US-listed international equity ETFs. It will also provide connectivity to ICE Bonds trading protocols, including click-to-trade and request for quote.

“Goldman Sachs has a long tradition of being at the forefront of trading in the ETF primary market, and we’re pleased to have them join the ICE ETF Hub community,” Peter Borstelmann, head of ICE ETF Hub, added. “ICE ETF Hub allows authorised participants to access create/redeem orders, and provides key infrastructure to boost efficiency and standardisation across the ETF marketplace.”