The Bloomberg terminal tool is intended to help firms create ETF baskets more efficiently.
ETF Shares, an exchange-traded
fund (ETF) issuer based in Sydney, Australia, is using an ETF creation and redemption tool, BSKT from Bloomberg, to support “more flexible and efficient” ETF baskets, officials say.
ETF Shares designs its investment products to help Australian investors and financial advisers manage their own and their clients’ wealth. “Using BSKT will enable ETF Shares to efficiently distribute portfolio composition files for each ETF to authorized participants at the end of each trading day,” officials say.
ETF Shares will also use “BSKT to make its primary market liquidity accessible via the Bloomberg Terminal, which provides a centralized location to access ETF baskets, submit create and redeem requests electronically, and get real-time updates on the lifecycle of each order,” officials say.
Officials add that the “standardized views of fund flows into each ETF will assist ETF portfolio managers to efficiently approve actions, such as pre-trade compliance checks and tickets tied to ETF create and redeem workflows. Once an order has been approved and settled, BSKT can be used to automate distribution of fund notifications and updates to ETF asset servicing providers,” officials say.
BSKT is a part of Bloomberg’s ETF suite of products that support the ETF lifecycle and are used by investors, issuers, and liquidity providers, officials say. BSKT is used by market-makers and authorized participants to create baskets of the underlying ETF assets in an automated way
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