Bank of America Is First Authorized Participant to
Leverage ICE’s FIX API for Creations and Redemptions
ATLANTA and NEW YORK, Nov. 17, 2020 – 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 servicesoffering 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 Technologyprovides the technology and infrastructure to transform and digitize U.S. residential mortgages, from application and loan origination through to final settlement.