ICE ETF Hub Expands Custom Basket Pilot Program

·4 min read

Four new market makers join the program

New technology enhancements bring additional automation to ETF Primary Market

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 four new market makers have joined the ICE ETF Hub pilot program. In addition, several enhancements have been made to the platform.

ICE ETF Hub launched the pilot program to allow issuers, market makers and authorized participants to experience, first-hand, the custom basket negotiation technology in a production environment. The new firms joining the program include Brownstone Investment Group LLC, Flow Traders, Sumridge and Wolverine. They join existing market makers, including Jane Street, Old Mission and CTC, among others. Additional firms are expected to join the platform in the coming months.

"The addition of these firms demonstrates the ETF industry’s desire for, and commitment to, increased efficiencies within the ETF primary market, which ultimately enables issuers to offer more innovation to the investment community," said Peter Borstelmann, President of ICE Bonds and Head of ICE ETF Hub.

ICE ETF Hub also recently launched new functionality giving more control and flexibility to market participants. The enhancements include the ability to pre-screen baskets against lists and indices, as well as ‘Countering’ functionality, giving participants more flexibility in negotiating custom baskets. In addition, ICE ETF Hub recently completed its connection to ICE FI Select, allowing traders to source bonds in the secondary cash market via ICE Bonds’ liquidity pools, and launched the ICE Chat functionality to support the custom basket workflow.

ICE ETF Hub’s custom basket negotiation technology allows primary market participants to negotiate and assemble custom basket proposals in an automated environment. This important improvement helps fixed income participants transition away from the cumbersome manual and bespoke processes in use today, to a standardized and automated environment.

ICE ETF Hub is an industry-wide, open architecture, technology solution, offering a more standardized and simplified process for the creation and redemption of ETF shares. ICE ETF Hub currently supports both US-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 formed in the year 2000 to modernize markets. ICE serves customers by operating the exchanges, clearing houses and information services they rely upon to invest, trade and manage risk across global financial and commodity markets. A leader in market data, ICE Data Services serves the information and connectivity needs across virtually all asset classes. As the parent company of the New York Stock Exchange, the company is the premier venue for raising capital in the world, driving economic growth and transforming markets.

Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located at http://www.intercontinentalexchange.com/terms-of-use. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading "Key Information Documents (KIDS)."

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 6, 2020.

About ICE Bonds

Securities products and services are offered through ICE Bonds Securities Corporation or ICE Bonds, member FINRA, MSRB, NFA and SIPC. The information found herein, has been prepared solely for informational purposes and should not be considered investment advice, is neither an offer to sell nor a solicitation of an offer to buy any financial product(s), is intended for institutional customers only and is not intended for retail customer use.

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Contacts

ICE Media Contact:
Damon Leavell
Damon.Leavell@theice.com
212-323-8587

ICE Investor Contact:
Warren Gardiner
Warren.Gardiner@theice.com
770-835-0114