Euronext delivers ETF first with Nav trading

ETF tradingEuronext says it is the first exchange to use a simpler process for trading exchange-traded funds (ETFs). The NAV Trading Facility collates orders sent to the exchange and executes them once a day at a price based on net asset value (Nav). The other method of execution is on-book trading, or intra-day trading, which offers continuous liquidity but involves managing intra-day trading risk. ABN Amro Basic Funds is the first firm to use the platform for two ETF products. Euronext says the NAV Trading Facility will open up the ETF market to a broader investor base because the simpler method of investing creates the conditions for a number of savings plans across Europe to include ETFs in their product selection. Pedro Fernandes, head of European exchange-traded products for Euronext, says: “We are very proud to be the first exchange to deliver a solution for ETF trading at Nav. The NAV Trading Facility complements intra-day/on-book trading and facilitates further usage of ETFs by investors, thereby supporting the overall development of ETFs in Europe.” Euronext says the NAV Trading Facility is available in addition to on-book trading for all Euronext-listed open-ended funds, including ETFs. It was designed in close consultation with the Euronext College of Regulators and industry players. Also, it is aligned with recent regulatory guidelines for ETFs. In July 2012, the European Securities and Markets Authority issued guidelines for Ucits funds that invest in indices, including ETFs, which centred on transparency. ©2014 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.