Fund transaction network Calastone has signed a deal to connect Navesis-ETF, a trading service for exchange-traded funds (ETFs), to platforms, fund supermarkets and
wrap providers in a move that should make it easier for more investors to execute low-cost ETF transactions.
The deal comes at a time when ETF investment is rising, with further gains expected in the wake of the UK retail distribution review (RDR) and similar proposed legislation in Europe, which ban trail commission for financial advisers.
Without the incentive of trail commission, more advisers are expected to recommend ETFs, which are typically cheaper than conventional mutual funds.
Jason Griffin, head of sales at Navesis-ETF, says the deal is a “market changing event” that will allow fund distributors to access the Navesis-ETF network thanks to a single connection with Calastone’s network.
“Over the last year we have seen increasing interest from both traditional mutual fund distributors and ETF issuers regarding how these two very different market participants can create the market infrastructure to enable direct automated trade execution,” says Dan Llewellyn, managing director of product at Calastone.
Navesis-ETF is a multilateral trading facility operated by brokerage firm Compagnie Financière Tradition and Nomura.
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