Euroclear France has launched an automated processing service for Exchange Traded Fund (ETF) transactions in the primary market.
The new service will simplify and reduce the cost of processing instructions for the movement of underlying securities in the creation and redemption of ETFs, says the depository.
Euroclear France says it will receive instructions from both the promoter and subscriber and will automatically generate the appropriate settlement instructions for the ETF's underlying securities.
Simultaneous DVP settlement occurs as the subscriber delivers the underlying securities to the promoter and receives the ETF shares in return, or vice versa, on a book-entry basis.
Counterparties can follow the progress of transactions through Euroclear's RGV settlement platform.
Joël Mérère, CEO, Euroclear France, says: "We are the only service provider in Europe to offer automatic processing for the full range of ETF transactions, both in the primary and secondary markets."