Continued enhancement of ETF services technology

BNY Mellon: Best ETF Back Office Tech Provider – Jeff McCarthy (pictured), global head of Exchange Traded Funds, BNY Mellon explains the firm’s 20+ years of experience in ETFs has positioned the bank to leverage mature processes to deliver a next generation of technology solutions. Today, BNY Mellon, winner of Best ETF Back Office Tech Provider in the ETF Express US awards, services one third of all ETFs listed.

“Over the last 12 months we have delivered several upgrades focused on features and capabilities in our digital platform, ETF Center, focused on supporting continuous industry changes which we believe will continue to increase assets and trading volumes,” McCarthy says. “Most recently, we delivered technology enhancements that have eased the interaction in the primary market between Portfolio Managers (PMs), Authorised Participants (APs), Market Makers, and Distributors which ensures a streamlined experience within the ETF dealing process.”

BNY Mellon is focused on delivering digital solutions across the ETF life-cycle. McCarthy says: “As a result, we are consistently sought by issuers to bring new and first to market product ideas within the ETF wrapper regardless of the investment strategy. 

“To support this type of innovation, over the past 24 months we have expanded our ETF Solutions team to include individuals with experience across operations, capital markets, and asset management to engage and develop digital solutions across the firm for both ETF issuers and liquidity participants.”

The recent major upgrade to the ETF Center platform provided enhanced resiliency, and the user experience for multiple personas. 

“User experience upgrades included user driven screen customisation, automated communication and interaction between PMs & APs, faster order entry for APs, streamlined basket negotiations, and automated security execution for cash-in-lieu securities. Additionally, BNY Mellon has integrated custody and fund information with portfolio manager OMS platforms-Aladdin and Bloomberg,” McCarthy says.

He comments that recent ETF regulatory changes in the US have streamlined the process for launching ETFs while providing all issuers the same flexibility in the primary market dealing process. 

“As ETFs have continued to grow in investor preference, technology continues to be a critical to support increased volumes. As a key component of the industry, BNY Mellon is focused on delivering digital solutions to meet the changing industry landscape for market participants,” McCarthy says. 

Jeff McCarthy
Global Head of Exchange Traded Funds, BNY Mellon

Jeff McCarthy is the global head of Exchange Traded Funds and responsible for leading and executing the long-term strategy to drive growth in BNY Mellon’s ETF business. As part of this mandate, he plays a critical role in the successful enterprise-wide delivery of comprehensive ETF solutions to the marketplace, and works to further develop long-lasting partnerships for BNY Mellon in the ETF industry.

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