DWS has become the first issuer to cross-list its UCITS ETFs on the Hong Kong and Singapore stock exchanges after shifting its range to the international central securities depositaries (ICSD) model.
The German asset manager announced last month it would be transitioning its Luxembourg-domiciled ETF suite to the ICSD model, aligning it with the rest of the range.
It comes after it moved its Irish-domiciled ETF range to the ICSD model in 2020.
As a result, the issuer has listed its ETFs on the Singapore Exchange and the Hong Kong Exchange, allowing Asian-based investors access to its ETFs.
In a move supported by Euroclear Bank, market makers will be able to transfer European ETFs between Europe and Asia on the same day.
Keshava Shastry, global head of capital markets at DWS Group, said: “The migration of our full product offering of ETFs to the ICSD model marks a milestone in our effort to provide investors in Asia Pacific with efficient settlement and liquid listings.
“The Asia-Pacific region is very important for the development of DWS’s passive business and we are excited to be part of this multi-region project.”
It comes after SGX Group, which owns the Singapore Exchange, became the most recent trading venue to join Euroclear Bank’s ETF ecosystem, which includes the Mexican, Tel Aviv and Hong Kong exchanges.
Brain Roberts, head of exchange-traded products at the Hong Kong Exchanges and Clearing (HKEX), added: “HKEX welcomes the conversion of DWS’ ETFs to the ICSD model, providing investors with greater settlement efficiency and supporting liquidity development of products listed on our market.”
Most ETF issuers in Europe have switched to an ICSD model, first introduced in 2013 to enable cross-listed ETFs to be settled on a pan-European basis.
The switches accelerated following Brexit when Euroclear UK & Ireland was no longer able to provide local CSD services for Irish-domiciled ETFs.
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