First ETF with an international security structure launches on Xetra
The iShares Euro Stoxx 50 ex-Financials UCITS ETF, the first exchange-traded fund to be issued with an international security structure, is now trading in Deutsche Börse’s XTF segment.
Transactions on the Frankfurt Stock Exchange are settled using the international settlement infrastructure of Clearstream Banking.
This new structure is intended to further increase the efficiency of cross-border transactions and the provision of liquidity by international trading participants.
The iShares Euro Stoxx 50 ex-Financials UCITS ETF offers exposure to the largest stocks in the euro zone, excluding companies that are allocated to the industry “Financials”. The index is free float market capitalisation weighted.
"We are pleased to welcome the first iShares ETF with an international security structure to the XTF segment," says Dr Martin Reck, managing director cash market at Deutsche Börse. "The new settlement structure is able to make a significant contribution to increasing the efficiency in cross-border ETF trading. Market participants additionally benefit from an expanded range of post-trade models available on Europe's leading trading venue for ETFs."
Michael Grüner, head of iShares sales for Germany, Austria and Eastern Europe, says: “With an international security structure, the ETF can settle more efficiently. This helps to increase liquidity and reduce costs, ultimately resulting in the growth of the European ETF market.”
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