Industry Updates

BNY Mellon introduces round-the-clock ETF dealing for Irish UCITS ETFs

Tom Eckett

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BNY Mellon has introduced extended dealing hours for Irish UCITS ETFs in a move to support the global distribution of these products.

Known as 24x5 ETF dealing, BNY Mellon has extended the trading hours to ETF issuers meaning Irish UCITS ETFs can be dealt from Monday morning in Singapore to Friday afternoon in New York.

In particular, 24x5 ETF dealing will support the distribution of Irish UCITS ETFs in APAC and Latin America, two key markets for UCITS expansion.

This will eliminate the need to close dealing on an ETF with APAC exposure on T-1.

BNY Mellon said this is part of its effort to improve the primary market transactional experience for authorised participants (APs) and market makers (MMs) by enabling more flexibility on dealing hours.

Jeff McCarthy, global head of ETF services at BNY Mellon, commented: "We are excited to extend our ETF dealing hours for Irish UCITS products.

“It allows ETF issuers to leverage our local support in APAC and the US, thus providing them with greater distribution and growth potential for their ETFs.”

Jim Goldie, head of ETF capital markets at Invesco, said: "UCITS ETFs are becoming much more of an international product with growing demand in LatAm, the Middle East and Asia.

"Extending trading hours will enable ETF issuers and liquidity providers to better service the needs of clients in local time zones, outside of traditional European business hours."

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Mohamed M’Rabti, deputy head of FundsPlace at Euroclear, added: “European ETFs continue to gain momentum on a global level and it is exciting to see BNY Mellon offering local time zone support in these jurisdictions.

“This enhancement complements our international settlement model whereby Euroclear offers ETF issuers direct settlement into Mexico and Hong Kong through iETF.”

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