ETF white-label platform HANetf has migrated six Irish-domiciled ETFs to the International Central Securities Depositary (ICSD) model in preparation for the Brexit deadline.
The ETFs are currently settled via CREST but will move to Euroclear Bank, effective 3 August.
The ETFs set to convert to the ICSD model are:
- EMQQ Emerging Markets Internet & Ecommerce UCITS ETF
- HAN-GINS Cloud Technology UCITS ETF
- HAN-GINS Tech Megatrend Equal Weight UCITS ETF
- KMEFIC FTSE Kuwait Equity UCITS ETF
- The Medical Cannabis and Wellness UCITS ETF
- HAN-GINS Indxx Healthcare Innovation UCITS ETF
Introduced in 2013, the ICSD model enables cross-listed ETFs to be settled in one pan-European location.
Previously, each exchange was linked to a regional CSD which led to fragmentation issues for cross-listed ETFs.
In recent times, the move to the ICSD model has been accelerated by the UK’s exit from the European Union in March 2021 as Euroclear UK & Ireland (EUI) will no longer be able to provide central securities depositary (CSD) services for Irish-domiciled ETFs.
According to BNY Mellon, some €61bn of Irish ETP migrations are set to complete by the end of this year leading to 96% of Irish ETPs using some form of the ICSD model.