ETFs - Market Makers, Authorised Participants & Prime Brokers

Euroclear group

The benefits of Euroclear’s ICSD model for market makers, authorised participants and prime brokers

Trade in multiple venues and time zones and settle easily in Euroclear Bank - manage your inventory efficiently in Euroclear Bank.

Whether you're a market maker, an authorised participant or a prime broker, there are a number of key benefits to having a single settlement location in Euroclear Bank.

  • Centralisation of the liquidity: With less fragmentation, the ICSD-model decreases the number of complex realignments between CSDs when trading between different stock exchanges. The model also reduces costs and simplifies inventory management. As a consequence, the risk of settlement failure is dramatically brought down and the number of costly buy-ins to cover settlement fails and related CSDR penalties dropped. This results in more competitive spreads.​
  • Primary market transactions: Since the Transfer Agents have an account in Euroclear, the settlement of the primary market transactions takes place smoothly.​
  • Multi-currency settlement: Euroclear’s ICSD model gives you access to settlement in all our eligible currencies​.
  • Long settlement window: Euroclear’s settlement window is open throughout Asian, European and US trading hours. ​
  • One single ISIN per ETF: Regardless of market, trading venue or currency, your ETF will be identified by one single ISIN.
  • Efficient inventory management: The intermediaries will have one inventory management account in Euroclear Bank in place of having one in all related CSDs.