BlackRock migrating ETFs to international settlement

BlackRock, Euroclear and Clearstream have partnered to migrate 20 iShares ETFs (exchange-traded funds) to an international issuance and settlement structure. BlackRock issued the first ETF with an international security structure in 2013, and has launched all new funds since March 2015 on this platform. These 20 ETFs, with $2.9 billion in assets under management, are the first in the pre-existing range to transition to the new model.

Under this structure, the issuance and settlement of the ETFs are carried out by an international central securities depository (ICSD), such as Euroclear and Clearstream. Issuing and settling in a single pan-European location simplifies the post-trade process of ETFs, enabling market makers to offer more competitive trading spreads to investors, and also boost overall liquidity.