The service will be available to institutional and retail clients in the UK via IFAs and fund platforms, Euroclear said.
According to Euroclear, by leveraging the EMX Message System, fund distributors will be able to route ETF subscription and redemption orders using the same infrastructure they currently use for mutual fund order flows.
Settlement of ETF trades can then take place at EUI, which currently settles trades in more than 1,600 ETFs.
Euroclear UK & Ireland CEO Yannic Weber said by combining Euroclear UK & Ireland’s comprehensive settlement capabilities with the order-routing prowess of the EMX Message System, they are uniquely placed to deliver a fully integrated, end-to-end service for ETFs.
"On the one hand, we are providing a solid fund processing infrastructure to a growing retail and IFA community. On the other hand, we are delighted to extend our order-routing service to support the ETF business of major fund promoters and distributors, for both the UK institutional and retail markets," Weber said.
