BNY Mellon has announced that it has expanded its real-time electronic messaging service for ETF order taking.
This is the latest addition to enhancements made over the last several months — integration with the Bloomberg “BSKT” fixed-income basket negotiation tool, custom order approval optionality for ETF portfolio managers and advancement of its basket execution services—according to the firm.
This most recent release, it adds, provides a new global standard for clients to transmit creation and redemption orders through a proprietary electronic message. The extended message structure supports all order types in all domiciles where the firm provides ETF services.
“Our infrastructure supports primary market dealing automation and STP through the ability to interact with both liquidity providers and third-party primary market dealer platforms,” Jeff McCarthy, CEO of Exchange Traded Products at BNY Mellon, said in a statement.
Functionality benefits include speed gains and mitigated risk, since manual entry within BNY Mellon’s ETF order-taking portal, ETF Center, has been eliminated, and by offering direct connectivity to liquidity providers and third-party order platforms.
Real-time transmissions and status updates allow authorized participants and market makers to manage the growing volume of activity in the primary market. The service blends the arbitrage mechanism with electronic order messaging, providing a more efficient inventory management order entry service into market close, implying reduced total costs and improved spreads for ETFs trading in the secondary market.