Brussels/London - 23 April 2018 – Euroclear Bank today announced that State Street Global Advisors (SSGA), the asset management arm of State Street Corporation (STT) has now completed the migration of all of its SPDR Irish-domiciled Exchange-Traded Funds (ETFs) to Euroclear’s ICSD model.
SSGA has transitioned the remaining 62 ETFs under the SSGA SPDR ETFs Europe I & II classification to Euroclear’s International issuance structure or ICSD model. The related transactions will settle directly in the ICSD – Euroclear Bank.
The first tranche of SSGA’s SPDR ETFs migrated into Euroclear’s international issuance structure in December 2014.
Mark Harris, Capital Markets Strategist for SPDR ETFs commented: “The international ETF model provides a centralised issuance and post trade environment that removes much of the fragmentation seen under the domestic model for our multi listed products. We believe the model will, over time, deliver a number of key benefits for our market participants whilst providing a solid platform for the continued growth of our European ETF business. We are pleased to be at the forefront of this infrastructure evolution and we look forward to continuing our partnership with Euroclear Bank and driving further efficiencies for our end investors.”
Mohamed M’Rabti, Deputy Head of FundsPlace, Euroclear added: “SPDR were the first to migrate to our international ETF structure and we are proud they have continued the journey with us to this final migration. Having all SPDR ETFs on the ICSD platform will allow SSGA’s clients to benefit from all the features of the model, such as securities lending, multi-currency settlement and longer settlement windows.”
Launched in 2013, Euroclear’s international structure for ETFs brings increased efficiency to a process that had previously only been supported by fragmented domestic market practices across Europe. Euroclear provides one place of settlement - an ICSD, thereby significantly reducing the complexity, cost and risk involved in ETF issuance. At the end of 2017, ETFs to the value of EUR 230 billion ($271 billion) had been issued in the international structure.