Bank of America Is First Authorized Participant to Leverage ICE’s FIX API for Creations and Redemptions
November 17 2020 - 8:30AM
Business Wire
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator
of global exchanges and clearing houses and provider of mortgage
technology, data and listings services, today announced that Bank
of America became the first authorized participant to leverage ICE
ETF Hub’s FIX API to communicate ETF share creations and
redemptions. This is an important milestone in the ETF industry’s
adoption of ICE ETF Hub, which was designed as an industry-wide,
open architecture, technology solution, offering a more
standardized and simplified process for the creation and redemption
of ETF shares.
ICE launched a FIX (Financial Information eXchange) application
programming interface (API) earlier this year that allows
authorized participants to connect to the ICE ETF Hub platform and
seamlessly and automatically manage their creations and
redemptions.
“Creations and redemptions for ETFs have traditionally been very
complicated and required market participants to use a variety of
tools to agree to baskets,” said J. Kevin McCarthy, Managing
Director and Head of BofA Securities Financing and Clearing. “ICE
ETF Hub is the first platform to offer FIX access to issuers and
authorized participants, which provides an end-to-end, fully
electronic workflow between Bank of America’s order management
system and ETF issuers’ platforms.”
ICE ETF Hub’s custom basket negotiation technology allows
primary market participants to negotiate and assemble custom basket
proposals in an automated environment. ICE Chat functionality was
also recently launched to support communication throughout the
custom basket workflow.
“We continue to believe that the standardization and automation
of the ETF primary market will lead to greater efficiencies for
market participants and convenience for investors,” said Samara
Cohen, Co-Head of ETF and Index Investing, BlackRock. “The FIX API
provides the infrastructure to modernize and scale the creation and
redemption process by connecting ETF authorized participants,
market makers and custodians in a seamless, automated workflow. We
are excited to see further progress and adoption by the industry,
including the inception of a dedicated ETF working group at the FIX
Trading Organization to help accelerate standardization across the
ETF ecosystem.”
“We’re excited to see our vision for automating and simplifying
the ETF creation and redemption process come to life, and to
continue working with the ETF community to bring further innovation
to help transform the primary market,” said Peter Borstelmann,
President of ICE Bonds and Head of ICE ETF Hub.
ICE ETF Hub currently supports both U.S.-listed domestic equity
and fixed income ETFs. For more information about ICE ETF Hub,
please visit: www.theice.com/etf-hub.
About Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE) is a Fortune 500 company
and provider of marketplace infrastructure, data services and
technology solutions to a broad range of customers including
financial institutions, corporations and government entities. We
operate regulated marketplaces, including the New York Stock
Exchange, for the listing, trading and clearing of a broad array of
derivative contracts and financial securities across major asset
classes. Our comprehensive data services offering supports the
trading, investment, risk management and connectivity needs of
customers around the world and across asset classes. As a leading
technology provider, ICE Mortgage Technology provides the
technology and infrastructure to transform and digitize U.S.
residential mortgages, from application and loan origination
through to final settlement.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual
property rights of Intercontinental Exchange, Inc. and/or its
affiliates is located at
http://www.intercontinentalexchange.com/terms-of-use. Key
Information Documents for certain products covered by the EU
Packaged Retail and Insurance-based Investment Products Regulation
can be accessed on the relevant exchange website under the heading
“Key Information Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 -- Statements in this press release regarding
ICE's business that are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion
of additional risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking
statements, see ICE's Securities and Exchange Commission (SEC)
filings, including, but not limited to, the risk factors in ICE's
Annual Report on Form 10-K for the year ended December 31, 2019, as
filed with the SEC on February 6, 2020.
ICE-CORP
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ICE Media Contact: Damon Leavell Damon.Leavell@theice.com
212-323-8587
ICE Investor Contact: Warren Gardiner
Warren.Gardiner@theice.com 770-835-0114
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