HSBC has unveiled an ETF asset servicing solution that includes a partnership with Calastone on an ETF order management system.
ETF Platform Solutions will provide ETF issuers across the globe with asset servicing solutions including ETF order management, portfolio composition file (PCF) production and AP services such as ETF seeding and access to HSBC’s fair value algorithm.
HSBC said the order management system will deliver real-time processing and monitoring capabilities to ETF issuers throughout the creation-redemption cycle.
The system will provide live analytics to ETF issuers and APs as orders are completed.
The move marks Calastone’s first foray into ETFs having previously only offered solutions in the mutual funds space.
Fiona Horsewill, global head of securities services at HSBC, said: “ETF Platform Solutions is tailored for ETF issuers using the full breadth of HSBC’s Securities Services capabilities.
“The scale and connectivity of our platform will cover the entire ETF ecosystem, so ETF issuers and APs can benefit from improved operational and infrastructure efficiency in processing large volumes of ETF orders across our global footprint.”
Brian Godins, chief commercial officer at Calastone, who joined the firm from HSBC in March, added: “Designed specifically for the ETF industry and powered by our Distributed Market Infrastructure, Calastone ETF Servicing is a scalable solution that enables HSBC to seamlessly support the growing ETF industry while the enhanced market connectivity we offer brings improved timeliness and transparency to ETF fund managers and their APs.”