HSBC Provides Dedicated FX Service in ETF Platform Solution

HSBC has announced the launch of ETF Platform Solutions, a new end-to-end platform that provides asset servicing solutions to ETF issuers through access to the bank’s markets and securities services capabilities, including FX execution.

Users will be able to access dedicated execution services under HSBC’s FX4ETFs and FX Overlay solutions, as well ETF order management, PCF (portfolio composition file) production and custom ETF NAV (net asset value) attribution analysis; AP (authorised participant) services including ETF seeding and HSBC’s ETF fair value algorithms; and swap provision.

As part of the roll-out, HSBC has also partnered with Calastone to provide an ETF order management system (OMS). Using Calastone’s cloud-based distributed market infrastructure, the new ETF OMS will deliver real-time processing and monitoring capabilities to ETF issuers throughout the ETF creation and redemption life cycle. The bank adds, from order placement through to settlement, its digital data integration interfaces will deliver live analytics to ETF issuers and authorised participants as order executions are completed.

HSBC’s Securities Services business will be deploying the new ETF OMS across its ETF client base, including issuers domiciled in Ireland, Hong Kong, Singapore and Australia.

“ETF Platform Solutions is tailored for ETF issuers using the full breadth of HSBC’s Securities Services capabilities,” says Fiona Horsewill, global head of securities services, HSBC. “The scale and connectivity of our platform will cover the entire ETF ecosystem, so ETF issuers and authorised participants can benefit from improved operational and infrastructure efficiency in processing large volumes of ETF orders across our global footprint.”