Q3, 2020

Simple. Efficient. Transparent

ICE ETF Hub Q3 Report

Throughout the last quarter we saw increased adoption of the ICE ETF Hub as we welcomed more Market Makers to the platform as part of the pilot program that was successfully launched earlier this year. The pilot program allows Market Makers to experience the custom negotiation functionality in a controlled environment. Within the first two months from the launch of the program we’ve seen over 300 custom baskets created. Jane Street, Brownstone and Flow Traders are just some of the latest Market Makers to join the Hub.

Q3 also saw the release of multiple product enhancements. Connectivity between ICE ETF Hub and ICE FI Select was completed, enabling Hub users to stage orders and source bonds in the secondary market via ICE Bonds liquidity pools further driving ETF creation / redemption workflow efficiencies. We also added new functionality to our custom basket negotiation facilitation including, pre-screening of investable lists allowing for a faster turnaround time of security selection and the launch of Phase 1 of the Issuer Basket Tool, an enhanced workflow with new communication features allowing Issuers to negotiate baskets and interact with their portfolio management systems. These innovations drive standardization and automation helping to increase scale and efficiencies in the ETF market.

Citigroup Global Markets is the most recent authorized participant to completed connectivity to ICE ETF Hub. Citi was a founding member of the ICE ETF Hub advisory committee, providing early feedback on the design of the platform. On joining the Hub John Mann at Citi said, “Having an efficient and automated creation and redemption process is critical for the effective functioning of global ETF markets”.
We have also recently welcomed JP Morgan Asset Management, ProShares and U.S. Bank to the ICE ETF Hub advisory committee. These new members bring extensive experience and expertise to the committee and will further help us drive new innovations on the Hub.
The ETF Hub team has expanded with John Olivares joining as Director of Product Management. John has extensive experience in the ETF creation and redemption process and will be focusing on product development for ICE ETF Hub, where he will leverage his deep knowledge to help further advance the Hub’s capabilities.
Looking ahead to Q4, the Hub will see new features added to the order entry workflow. We will be expanding the order capability to enable Market Makers to request standard order placement with their AP, this new functionality will allow users to submit both standard and custom orders all through one simple and unified user interface.
We will also be enhancing the FIX API for both order entry and to negotiate custom baskets. This will enable ICE ETF Hub users to negotiate baskets electronically and connect via our FIX API directly with an Issuer. Market Makers and Authorized Participants can code to the ETF Hub API and connect to create/redeem orders, sending the request electronically via FIX to their AP for order entry.
In addition to these developments, we will also be launching Phase 1 of the Issuer direct workflow, this new feature will allow Service Providers to create product configurations on behalf of an Issuer, ingest portfolio composition file (PCF) data including derivatives, futures and other asset classes to be used for order placement.
Phase 2 of the Issuer Basket Tool will also be launching in the coming quarter - this functionality will include the ability to leverage the custom basket workflow for redemption baskets and set custom parameters around the screening of lists during basket requests.
Research, insights and more from the ICE ETF Hub community.
Navigating the ETF Lifecycle FIX Webinar
Peter Borstelmann, Head of ICE ETF Hub, recently joined a FIX webinar on how to drive efficiency in the ETF primary trading processes and ecosystem.

Hear from ETF experts on the new Active ETFs, ETF liquidity and market volatility, ICE’s ETF toolset, and how to grow an ETF brand globally in today’s marketplace.
Interested in hearing more about the ICE ETF Hub?