Euroclear Bank supports the first cross-listing of iETFs in Asia Pacific
The first cross-listing of iETFs in Asia Pacific
Hong Kong/Singapore, 20 October 2022 – Euroclear Bank, the Brussels based international central securities depository (ICSD) has achieved a market milestone in supporting the first cross listed UCITS iETF on both the Hong Kong and Singapore exchanges.
The issuer, DWS Group successfully migrated their Luxembourg range of domestic ETFs to the ICSD model, listing on the Singapore Exchange (SGX Group) and the Hong Kong Exchanges and Clearing Limited (HKEX). SGX Group is the most recent trading venue to join Euroclear Bank’s ETF ecosystem which includes the Hong Kong, Mexican and Tel Aviv exchanges.
The ability to now cross-list in Asia through the ICSD model will allow European ETF issuers the option to expand their distribution network to Asia while also allowing their investors based in Asia to benefit from cost and risk efficiencies. Market makers will also now be able to transfer European ETFs same day between Europe and Asia.
Keshava Shastry, Global Head of Capital Markets, DWS Group said: “The migration of our full product offering of ETFs to the ICSD model marks a milestone in our effort to provide investors in Asia Pacific with efficient settlement and liquid listings. The Asia Pacific region is very important for the development of DWS’ Passive business and we are excited to be part of this multi-region project.”
Brian Roberts, Head of Exchange Traded Products, HKEX added: “HKEX welcomes the conversion of DWS’ ETFs to the ICSD model, providing investors with greater settlement efficiency and supporting liquidity development of products listed on our market. Our role as a super connector between the East and the West is creating opportunities for European ETF issuers to expand their distribution network into Asia through Hong Kong. As Asia’s ETF trading hub, HKEX is committed to continually enhancing its market infrastructure and building the connectivity that will help investors connect with more opportunities.”
Serene Cai, Head of Securities Trading, SGX Group, commented: “Asia’s ETF market has seen stellar growth in recent years and will continue to see significant inflows as more asset managers and products enter the market. With the establishment of the link with Euroclear, SGX Group is enabling fund managers to benefit from improved liquidity formation and narrower spreads in their cross-listed structures in Singapore through enhanced settlement efficiencies.”
Isabelle Delorme, Head of Strategy and Product Expansion, Issuers, Fund Managers and Sustainable Finance, Euroclear said: “We are very pleased to have achieved this watershed moment for iETF cross-listing in the Asia Pacific region. This could only have been accomplished by true collaboration with our partners with the objective of providing additional market efficiencies to investors. We are also extremely proud to welcome SGX Group to our network, supporting our global distribution strategy.”
Euroclear group is the financial industry’s trusted provider of post trade services. Guided by its purpose, Euroclear innovates to bring safety, efficiency and connections to financial markets for sustainable economic growth. Euroclear provides settlement and custody of domestic and cross-border securities for bonds, equities and derivatives, and investment funds. As a proven, resilient capital market infrastructure, Euroclear is committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise. The Euroclear group comprises Euroclear Bank, the International CSD, as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden, Euroclear UK & International and MFEXbyEuroclear.
“This could only have been accomplished by true collaboration with our partners with the objective of providing additional market efficiencies to investors. We are also extremely proud to welcome SGX Group to our network, supporting our global distribution strategy.”
Isabelle Delorme, Head of Strategy and Product Expansion, Issuers, Fund Managers and Sustainable Finance, Euroclear
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