Invesco selects Euroclear’s international structure for European ETF issuance
Invesco selects Euroclear’s international structure for European ETF issuance
Euroclear Bank, the Brussels- based international central securities depository (ICSD), and Invesco, a global investment manager headquartered in Atlanta, Georgia (USA), are collaborating on issuing the Invesco Variable Rate Preferred Shares UCITS ETF.
Euroclear Bank, the Brussels- based international central securities depository (ICSD), and Invesco, a global investment manager headquartered in Atlanta, Georgia (USA), are collaborating on issuing the Invesco Variable Rate Preferred Shares UCITS ETF.
The ETF, which uses Euroclear’s international issuance structure, is listed and traded on the London Stock Exchange (LSE), and will settle directly in the ICSD – Euroclear Bank.
Gary Buxton, Chief Operating Officer for EMEA ETFs at Invesco said: “We are delighted to partner with Euroclear on the launch of this ETF, which is the only ETF in Europe to offer exposure to the USD 250bn preferred shares market.”
Mohamed M’Rabti, Deputy Head of FundsPlace at Euroclear, added: "We are very proud to have partnered with Invesco, an important player in the global ETF market. Our international ETF model has gathered a lot of momentum over the past few years and it’s great to see that we are the infrastructure provider of choice for an increasing number of European ETF issuers which can leverage our global distribution channel.”
Launched in 2013, Euroclear’s international structure for ETFs brings increased efficiency to a process that had previously only been supported by fragmented domestic market practices across Europe. Euroclear provides one place of settlement - an ICSD, thereby significantly reducing the complexity, cost and risk involved in ETF issuance. ETFs with a value of over EUR 230 billion ($271 billion) are currently issued in the international structure.