BNY Mellon shortens timeframes for online ETF trading

Source: BNY Mellon

BNY Mellon Asset Servicing, the global leader in investment services, has enhanced its Authorized Participant Interface (API) to allow authorized participants (APs) increased trade order flexibility and enhanced reporting tools.

API is BNY Mellon's industry leading global exchange-traded funds (ETF) order processing platform.

APs are firms approved to create and redeem shares of exchange-traded funds by delivering or receiving baskets of securities and/or cash to create or redeem shares of the ETF portfolios. This enhancement provides the APs with the ability to pre-notify trade orders on the day prior to trade date and after market close to facilitate processing for international portfolios.

"The increased automation and enhanced flexibility will allow APs to conduct transactions more quickly and with more precise trading options, reducing processing errors and post-trade reconciliation issues," said Joseph Keenan, managing director and global head of exchange-traded fund services at BNY Mellon Asset Servicing. "Fostering consultative relationships with the authorized participants affords us the insight required to further enhance our suite of services to meet the specialized requirements of this rapidly evolving segment of the global funds industry."

The enhanced API also provides investment managers and fund distributors with an automated, real-time mechanism for approving and tracking daily order flow.

Additional enhancements for the API include:

* Authorized participants have the option to shorten the settlement period for an order and, when eligible, settle the order through National Securities Clearing Corporation (NSCC).
* Authorized participants can place cash orders online.
* Authorized participants can receive an automated trade confirmation with all the relevant order details.
* Authorized participants can access an online view of the basket details for each portfolio, including underlying constituents, shares outstanding and net asset value.

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