US exchange group ICE has confirmed that JP Morgan Asset Management will become a key development partner for its ecosystem for exchange traded funds (ETF).
JP Morgan Asset Management has signed up to become a member of the ICE ETF Hub advisory committee, which focuses on improving and developing the open architecture platform for issuers, authorised participants, market makers and custodians.
“As an issuer serving fast-growing ETF markets, we’re aware of the critical need for a robust infrastructure for the primary market that can support our customers’ needs for both investment returns and innovation,” said Joanna Gallegos, global head of ETF strategy at JP Morgan Asset Management. “The ICE ETF Hub advisory committee is squarely focused on improving that infrastructure and we look forward to helping pursue greater efficiencies to the ETF market.”
ICE has onboarded several major institutions recently to the ETF Hub as authorised participants, and has rolled out new basket negotiation technology to the platform. Credit Suisse and Wells Fargo were among the banks that have signed up recently, following in the footsteps of Goldman Sachs, JP Morgan, Citadel Securities and others.
Earlier this month, ICE also said the ETF Hub traded a record notional volume of $148 billion in the second quarter this year. The new volume record was up 9% on the previous quarter, which recorded $137 billion in notional volume.
The ETF Hub supports US-listed domestic equity and fixed income ETFs, but ICE plans to expand this to also support US-listed international equity ETFs. The exchange will also add connectivity to its bond execution platforms through the recently formed ICE Select division during the third quarter this year to provide secondary market cash bond trading.