Industry Updates

State Street to delist five ETFs to concentrate liquidity

The firm says delistings will reduce spreads and concentrate liquidity

Lauren Gibbons

State Street office building

State Street Global Advisors (SSGA) is set to delist five ETFs from multiple trading venues in a bid to “concentrate liquidity on a smaller number of exchanges”.

SSGA will delist the $537m SPDR MSCI Japan EUR Hdg UCITS ETF (JPEH) from the London Stock Exchange (LSE), effective 10 May.

Meanwhile, the $86m SPDR Bloomberg 10+ Year U.S. Treasury Bond UCITS ETF (LUTR), the $13m SPDR Bloomberg 7-10 Year U.S. Treasury Bond UCITS ETF (TRSX) and the $12m SPDR Bloomberg China Treasury Bond UCITS ETF (CHNT) from delist from the Euronext Milan on 10 July.

Finally, the $861m SPDR MSCI EM Asia UCITS ETF (EMAD) will delist from Euronext Paris on 10 May.

In a shareholder notice, SSGA, said: “The investment manager is of the view that the company should aim to list shares on exchanges where there is sufficient demand, concentrated liquidity and where trades can be made with competitive spreads.

“Following a recent review, the directors have decided to apply to delist some trading lines of the funds in order to concentrate liquidity on a smaller number of exchanges and to reduce spreads rather than having listings on a larger number of exchanges with lower volumes.

“Maintaining listings which only have small volumes of trading can result in reduced liquidity at a higher price.”

For each ETF that will be delisted, SSGA will keep at least one ETF listed on another European exchange.

Last week, HSBC Asset Management closed four emerging market ETFs due to low assets under management, as Brazil and Latin America ETFs struggled to bring in returns following slower economic activity this year.

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