Euronext first Exchange to start ETF NAV Trading
Euronext, a wholly owned subsidiary of IntercontinentalExchange Group (NYSE: ICE), announced that it is the first exchange to trade ETFs on the NAV Trading Facility. This initiative will open up the ETF market to a broader investor base by offering a regulated on-exchange forward pricing solution for order execution at Net Asset Value (NAV). ABN Amro Basic Funds N.V. is the first firm to benefit from the platform by launching its first ETFs— AABF ETF ES50® and AABF ETF AEX® on February 6th 2014.
The NAV Trading Facility is regulated, transparent and efficient and provides investors with greater accessibility and a simpler process for NAV trading, thanks to the electronic management of order entry, accumulation, execution, clearing and settlement. All orders sent to the exchange are executed once a day at a price based on NAV. All market data related to trades conducted on the NAV Trading Facility is made available to data vendors, financial institutions, and private and institutional investors thereby, contributing to transparency of the overall post-trade activity.