ETF Service Providers IN FOCUS

February 01, 2013

 

Combining core operational excellence with a unique consultative approach.

Shawn McNinch
Shawn McNinch
Global Head of ETF Services
Brown Brothers Harriman

Brown Brothers Harriman (BBH) is a leading provider of asset servicing for the global ETF market. With more than $155 billion in ETF assets under custody, BBH works with a diverse group of asset managers to introduce products across global markets.

Product Expertise
BBH's expertise in global custody, transfer agency (TA), administration and accounting services are the foundation for our ETF-specific services. Our services extend across the entire realm of both physical and synthetic ETF and ETP structures utilizing active, passive and quantitative strategies, and a variety of investment instruments.

ETF Connect™
ETF Connect™ is BBH's new suite of ETF-specific products where ETF sponsors, authorized participants (APs), and BBH (administrator and custodian) can manage ETF operations through a single platform. Through ETF Connect, users have the ability to access new and enhanced ETF products including the recently launched APEX™ (AP Exchange). APEX, specifically built for ETFs, provides work flow automation based on client-specified creation/redemption order requirements that take place between the ETF sponsor, APs and BBH. Further, the tool supports custom baskets, as well as restricted securities at time of order placement. APEX is fully integrated with BBH's core services to enable streamlined and efficient processing of transactions.

ETF Consulting Services
BBH ETF Consulting Services employs a definitive approach to deliver service excellence to its clients. We offer our market knowledge and insights, as well as critical intellectual capital and best practices across a spectrum of activities. We work with some of the world's largest and most experienced asset managers, and many of the newest, innovative market entrants.

We regularly assist ETF sponsors with a variety of legal, research-oriented, and project management resources and expertise. Our dedicated ETF team maintains relationships within the industry including listing exchanges, distributors, authorized participants, index providers and data providers.

Benefits of Working with BBH

Information Delivery

  • Automation through STP
  • Rigorous risk management structure and processes
  • Flexible data delivery
  • BBH Infomediary® for data transformation, messaging and middle-office solutions

 

Collaborative Relationship

  • Work in a shared partnership with our clients
  • Deliver client-tailored solutions in order to support unique operational models and requirements
  • Award-winning client service

 

Market and Channel Access

  • U.S. and global distribution
  • Primary and secondary listings via multiple exchanges and currencies
  • Unique global service model supported by a single operating platform
  • In-depth knowledge of multiple channels

 

Product and Industry Expertise

  • Engage in global product research and industry practices for the benefit of our clients
  • Subject matter experts participate in numerous industry associations, committees and conferences worldwide
  • Dedicated product team blends the complementary skills of experienced BBH employees with those who have worked at global ETF sponsors

 

ADDRESS: 50 Milk St., Boston, MA 02109
PHONE: 617-772-1376
EMAIL: shawn.mcninch@bbh.com
WEBSITE: bbh.com

 


 

The leading provider of services to exchange-traded funds.

Joseph F. Keenan
Joseph F. Keenan
Managing Director
BNY Mellon

At BNY Mellon, Global Exchange-Traded Fund Services is among the fastest-growing businesses within BNY Mellon's Investment Services, the largest segment within our company. We are a dominant provider of fund services globally, and are the leading provider of services to exchange-traded funds (ETFs). Today BNY Mellon handles nearly 500 ETFs in the U.S., and globally we're approaching 600 funds, with more than $275 billion in total assets administered. BNY Mellon enjoys a demonstrated record of innovation in the ETF arena. Since facilitating the launch of the second ETF in the mid-1990s, we have been laser focused on the unlimited potential ETFs present as a high-growth segment of the funds industry for more than 17 years.

BNY Mellon has been in the ETF space since 1995, and supported a number of industry firsts, such as the first European ETF, the first fixed-income ETF and the first hard commodity ETF, just to name a few. Our expertise covers the widest range of ETFs supported, including index-based, equity, fixed-income, actively managed, leveraged/inverse and commodity-based products.

The key to our success can be found in the ability to develop truly consultative partnerships with our clients, and through our collaboration, we have become a catalyst driving the rapid evolution of the entire industry. The success of any ETF relies on seamless integration of all segments of the market: the front, middle and back office, including the ability to partner with institutions that create and redeem shares and to work closely with listing exchanges, index providers and other market participants.

At BNY Mellon, we have developed an unmatched team of experts during the last two decades, reinvested in our business to create state-of-the-art tools and technology, and built deep bench strength to support our exponential growth. We make it easy for clients to develop and launch a product, while mitigating risk, and offer a genuine turnkey solution to facilitate their entry into the ETF marketplace.

BNY Mellon was named Best Service Provider - Americas, for the sixth-consecutive year, at the 2012 Global ETF Awards®. This is unprecedented, and we thank our clients for the opportunity to partner with them, in delivering lower costs, trading flexibility, and access to previously unavailable asset classes that ETPs offer. We look forward to sharing with you all that we have learned as you enter the exciting and dynamic ETF arena.

BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team. It has $27.1 trillion in assets under custody and administration and $1.3 trillion in assets under management, services $11.5 trillion in outstanding debt, and processes global payments averaging $1.4 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Learn more at www.bnymellon.com or follow us on Twitter@BNYMellon.

ADDRESS: 1 Wall St., New York, NY 10286
PHONE: 212-635-7150
EMAIL: joe.keenan@bnymellon.com
WEBSITE: bnymellon.com

 


 

We leverage our global, firmwide operations and expertise in over 50 countries to provide assistance.

Phyllis Schroder
Phyllis Schroder
Executive Director
J.P. Morgan

J.P. Morgan offers a market-leading, comprehensive suite of products for developing, launching and servicing ETFs. Our fully integrated ETF offering includes basket settlement services, cross listing, prime custody, collateral management, index receipt agent, global custody, securities lending, fund accounting, fund administration and transfer agency services. We leverage our global, firmwide operations and expertise in over 50 countries to provide assistance in launching new and innovative fund structures while engaging our ETF clients in a consultative process.

Our ability to bring together resources from the entire global franchise—including our Investment Bank, collateral management, prime custody, and futures and options groups—differentiates us from our competitors.

  • Our Investment Bank is an authorized participant for all major ETFs and a market maker in all ETFs. It also provides additional complementary services around primary and secondary market trading as well as specialized ETF research.
  • Our OTC Derivatives Collateral Management solution leverages our expertise in managing risk and exposure. We provide clients with a robust, scalable and cost-effective means of managing collateral and credit risk.
  • For prime custody services, we offer comprehensive solutions that enable Prime Brokerage clients to use our core custody platform to hold long positions. Clients who participate in this integrated offering benefit from consolidated reporting, automated collateral movements and a single point of contact.
  • J.P. Morgan has been consistently ranked as a top-tier futures and options broker with the number of futures and options contracts executed or cleared with J.P. Morgan outperforming the market across many exchanges.

We also work closely with external counsel, stock exchanges, registrars, brokers, subadvisors and depositories to oversee the business analysis, design, development, testing, procedures and control of new ETF products. In addition, our continued investment in technology has enabled us to expand our ETF offering, providing several industry "firsts." Specifically, we have assisted our clients in offering the first "class of share" ETF, the first enhanced index, inverse index and enhanced inverse index ETFs, and the first series of foreign-currency-based ETFs. We also developed the infrastructure to support long/short ETFs leveraging our integrated prime custody solution. Additionally, we have assisted with the compilation and dissemination of complex intraday indicative valuation files and the creation of an ETF dividend reinvestment program.

J.P. Morgan has placed significant strategic importance on the ETF marketplace and we have the experience and full range of capabilities to serve the needs of investment managers.

ADDRESS: 1 Chase Manhattan Plaza, 19th Flr., New York, NY 10005
PHONE: 212-552-2955
EMAIL: phyllis.a.schroder@jpmorgan.com
WEBSITE: jpmorgan.com/visit/etf