Credit Suisse joins ICE ETF Hub as authorized participant

By Tom Auchterlonie · June 29, 2020

Intercontinental Exchange Inc., the parent company of the New York Stock Exchange, said Monday that Credit Suisse is the latest financial firm to join its platform to support primary market activities for exchange-traded funds.

The Swiss banking giant will join as both an authorized participant and as an advisory committee member, ICE said.

An authorized participant, ICE has said, is “an institutional firm authorized by an ETF issuer to facilitate creations or redemptions of ETF shares.”

Credit Suisse is the latest big financial institution to join the platform, which is known as the ICE ETF Hub and launched last October. Other authorized participants include Wells Fargo, which ICE joined last week, and Goldman Sachs, which ICE joined in March.

The platform, ICE has said, offers “a more standardized and simplified process for ETF creation and redemption.”

Jim McKeever, who is Credit Suisse’s head of program trading for the Americas, emphasized the importance of the primary market given the overall market growth for ETFs.

“As the ETF market continues to grow in both size and complexity, it’s critical that more electronification and standardization be applied to the ETF primary market,” McKeever said in a statement. “We look forward to working with the members of the ICE ETF Hub advisory committee as they bring more efficiency to the creation and redemption process.”

The ETF platform provides support for fixed-income ETFs and U.S.-listed domestic equity ETFs. ICE has said that it plans to add support for international ETFs that have U.S. listings later this year. 

Peter Borstelmann, who is head of the platform, cited Credit Suisse’s international equities background in having the firm join.

“Credit Suisse brings an unparalleled level of expertise in international equity markets to our growing community of ETF market participants,” Borstelmann said in a statement. “Their unique perspectives will offer a valuable contribution as we continue to expand the breadth of products and functionality offered on the platform.”

ICE also reiterated other aspects of its planned product offerings for this year, including connecting the platform with ICE FI Select, a bond liquidity product, and adding functionality for ICE Chat.

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