Final push gets the job done on Xtrackers settlement switch

DWS has completed the transition of Ireland-domiciled Xtrackers ETFs to the International Central Securities Depository (ICSD) global settlement system.

The 50-strong project team, which included 20 external vendors and partners, completed the project to move from issuing in London’s CREST settlement system to the ICSD structure.

Like all listed shares, ETF trades settle in a central securities depository (CSD), and until now Xtrackers domiciled in Ireland had settlement linked to the local CSD. Settlement on the international system brings with it a number of benefits, including making it easier for DWS Xtrackers ETFs to be made available on non-European exchanges, with settlement available in over 50 currencies.
Fiona Bassett, Global Head of Systematic Investment Solutions, says: “The ability to feed multi-exchange transactions to the same ICSD will ultimately drive growth in the ETP market and related securities lending.”
The move is part of a broader industry shift from settling Exchange Traded Product (ETP) shares on exchanges’ individual CSDs towards a single settlement structure for multiple exchanges.